El Salvador President Nayib Bukele wants to buy Bitcoin from the United States government, as the US Department of Justice (DOJ) has approved the sale of the cryptocurrency seized in the Silk Road case.
President Bukele eyes Bitcoin business
The U.S. government recently authorized the sale of 69,370 Bitcoin ($6.7 billion) seized from Silk Road, which is notorious for illicit activities. However, a substantial amount of BTC entering the market at once could cause price volatility. This could also create buying opportunities for savvy investors.
This is exactly what President Bukele of El Salvador is anticipating. He believes that as the supply of Bitcoin increases in the market, prices could fall, allowing his government to buy more Bitcoin at a lower price.
Maybe we will all have a chance to buy Bitcoin at a discount, Bukele wrote on Twitter when reposting the news about the US Bitcoin sale.
Bitcoin was trading below $92,600 at press time, down 2.1% in 24 hours. The drop is concerning, as Bitcoin surpassed $100,000 again just two days ago.
Bitcoin Price Chart Showing BTC Drop. Source: BeInCrypto
However, it appears that El Salvador has been buying Bitcoin regularly in the new year. As per the latest data, El Salvador purchased over 18 BTC last week for $1.71 million, including 11 BTC on January 9 alone.
El Salvador Bitcoin Purchase History. Source: El Salvador Bitcoin Office
El Salvador has been pro-Bitcoin since 2021
Since 2021, El Salvador has been a big proponent of Bitcoin, even making it legal tender in the country. The nation has been steadily increasing its Bitcoin reserves, with its current holdings totaling 6,022 BTC, worth around $557 million.
President Bukele has made it clear that El Salvador's goal is to continue acquiring more Bitcoin, especially at times when the market presents discounted purchasing opportunities.
Last month, El Salvador amended its Bitcoin Law. This was done as part of an agreement with the International Monetary Fund (IMF) for a $1.4 billion credit line.
El Salvador has said it will make accepting BTC voluntary instead of mandatory for merchants. The move was made because the IMF was concerned about Bitcoin’s price volatility.
The article El Salvador wants to buy Bitcoin seized in Silk Road case appeared first on BeInCrypto Brazil.
