Buy the Dips
How’s your crypto portfolio doing? Over the weekend, we saw cryptocurrencies cool off after an overall bearish day in the markets on Friday. After the first case of the Omicron variant was discovered in the US last Wednesday, all three major stock indices finished Friday in the red and posted losses for the week.
On Friday, the Nasdaq lagged the Dow and S&P 500, with technology firms taking the hardest hit. The selloff spilled over into cryptocurrencies, with no apparent reason for the drops. However, some crypto enthusiasts believe the drop was sparked by liquidations in the crypto derivatives market, anxiety about the Fed easing monetary policy amid the non-transitory inflation and concerns over the new covid variant.
As of Sunday, Bitcoin is hovering just under $50,000 and Ethereum has fallen nearly 8% this week. While many investors sold their Bitcoin amid the dip, there was one investor who bought more — El Salvador.
El Salvador’s president, Nayib Bukele, tweeted about his country’s recent Bitcoin buys “El Salvador has just purchased the dip! 150 coins at an average price of $48,670.” In September, El Salvador made Bitcoin legal money. The country has acquired 1,370 BTC since then.
El Salvador has bought Bitcoin’s dip frequently. President Bukele announced on November 26 that his country had purchased 100 additional BTC after the price fell following news of the new covid variant. What are your thoughts on El Salvador buying the dip again? Did you buy the crypto dip?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.