The post Bukele was right: El Salvador timed the bitcoin bottom almost perfectly appeared on BitcoinEthereumNews.com.

Today, enjoy the Empire newsletter on Blockworks.co. Tomorrow, get the news delivered directly to your inbox. Subscribe to the Empire newsletter. Dollar-cost Awesome Central banks may be buying gold at a record-setting pace — but El Salvador is still busy stacking sats. And while gold is at fresh all-time highs, Nayib Bukele’s government has given itself every advantage with its strategy of dollar-cost averaging bitcoin. Bukele couldn’t have picked a better time to start buying regularly: less than a week after FTX filed for bankruptcy. Bitcoin had just tanked by one-fifth amid the Sam Bankman-Fried debacle, from over $21,000 to under $17,000, bringing its year-to-date losses to over 65%. It was then that Bukele opted to start buying bitcoin every day. El Salvador had already acquired thousands of bitcoin in the 14 months leading up to the FTX crash. The first purchases came in September 2021, a few days before bitcoin officially became legal tender thanks to a law that was passed in June. At least, that’s going by the posts on Bukele’s timeline (shown by the big colorful plus signs on the chart below). The symbols in red reflect the dollar-cost averaging strategy Bukele never really showed onchain receipts for his first set of purchases, so we don’t know at what price El Salvador was buying — except for one post that celebrated buying 85 BTC at $19,000 each. But if we take the price of bitcoin around the time of Bukele’s tweets, El Salvador potentially spent $105.11 million on its initial 2,381 BTC, giving an average price of $44,145. Bitcoin currently trades for $58,460, so the same amount would be worth $139.33 million, converting to paper gains of over 32%. From there, it gets murkier before it gets much clearer (and onchain). Bukele only disclosed an official bitcoin wallet…

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Filed under: News - @ September 2, 2024 2:22 pm