Bitcoin drops to $36,000, El Salvador buys 410 coins again

Bitcoin finally fell below a half-year low and dropped to $36,000. El Salvador, a Central American country that strongly supports Bitcoin, made another move and purchased about 410 Bitcoins, bringing the treasury Bitcoin stock to 1,500.

At 6:00 a.m. on January 22, Bitcoin (BTC) once fell below $36,000, the lowest price of $35,894 in half a year. This strong diving wave not only reduced the market value of Bitcoin by $600 billion, but also reduced the overall market value of cryptocurrencies. Almost $1 trillion evaporated.

If calculated from the all-time high in November 2021, Bitcoin is currently close to halving, down 45%. The correction after the highs was very reasonable, but Bitcoin has encountered a policy surprise from the US Federal Reserve, and under the pressure of shrinking balance sheets, technology stocks, Bitcoin and other risk assets are all facing challenges.

Bitcoin drops to $36,000, El Salvador buys 410 coins again

Bitcoin's 7-day trend against the US dollar. (Source: Coinmarketcap)

Bitcoin and cryptocurrencies have been hit hard, and naturally, the stock prices of cryptocurrency-related companies have plummeted. Coinbase fell as much as 16% at one point, almost its lowest point since listing. MicroStrategy also fell 18 percent, in part because the SEC named it not for using unofficial accounting numbers to educate investors about bitcoin-related gains and losses.

Amid the sound of fear, the El Salvadoran government, whose head has been washed in half, has no stopping point. According to the data, Saskatchewan bought another 410 bitcoins at a price of about $36,580, with a total transaction value of about $15 million.

El Salvador currently holds 1,500 bitcoins on which to issue a $1 billion ten-year bitcoin bond to promote large-scale public construction, including geothermal power, medical facilities, and bitcoin cities.

El Salvador's President Nayib Bukele loves Bitcoin and has always bought on dips in the past six months. The latest tweet said: "I thought I missed this low, but luckily I didn't, some people really sold it Very cheap."

Although El Salvador has not disclosed investment profits and losses, from September 2021 to the present, the holding cost should fall between US$42,000 and US$45,000. Although it is a loss on the book, it is right for the whole country to invest in Bitcoin for a long time. Wrong, it takes more time and information to verify.