El Salvador took advantage of this market crash and added more Bitcoins to the government’s Bitcoin treasury fund.
El Salvador became the first-ever country in the world to adopt Bitcoin as a legal tender. The strategy of El Salvador to buy bitcoin is based on the basic idea concepts of the experienced Bitcoin traders. In the past, El Salvador bought Bitcoin in every crash.
On 26 November, a crash in the crypto market took place. And on 27 November, Nayib Bukele- President of El Salvador- announced through Twitter that the Country added 100 more Bitcoins in the bitcoin-USD funds.
The total value of 100 Bitcoin is around $5.4 million at the current price. In the last crash, El Salvador bought around 420 Bitcoins.
At this time, El Salvador holds more than 1000 Bitcoins.
El Salvador’ Bitcoin city
A few days ago, El Salvador announced its plan for Bitcoin city, funded by a $1 billion “volcano bond”. One-half of the funds will be used to buy Bitcoin and the rest in Bitcoin mining.
The main initiative of the Volcano bond was to collect funds for the Bitcoin mining operations and generate revenue for the Bitcoin bond buyers with a 6.5% annual coupon.
Reason for Market crash
On 26 November, the crypto market crashed and the main reason was news of a new variant of the coronavirus that took birth in South Africa and also a few cases found in other countries.
After the Wall Street Journal report on Corona’s new variant, many crypto investors became tense and sold their crypto assets in panic.
However this is not the first time when the market crashed because of the corona pandemic, earlier this similar thing happened because of the COVID pandemic.