Bitcoin Slumps Below $30,000 Amid Global Risk Flight, El Salvador Acquire More BTC

Updated:

Despite the frenzied sell-off recorded in Bitcoin (BTC) over the past few days, El Salvador has added more BTC to its reserves “at a discount.”

President of El Salvador Nayib Bukele announced via Twitter yesterday that his country had purchased an additional 500 BTC. He tweeted: “El Salvador just bought the dip! 500 coins at an average USD price of ~$30,744.”

The purchase came as Bitcoin touched its lowest point since July 2021, and extended its from its all-time high by 56%. At press time, the primary cryptocurrency traded at $31,900 and was down by 3.2% over the past 24 hours and 17% over the past seven days.

El Salvador made history by becoming the first sovereign nation to make Bitcoin a legal tender, alongside the US dollar, in September 2021.

Since then, the nation has only added more BTC to its reserves. Following its latest purchase, the country’s BTC reserve stands at 2,301 BTC (worth $73.4 million using the current exchange rate).

That said, estimates place that the nation’s BTC holding has lost over $30 million in value with the latest crash. Regardless, President Bukele remains undeterred in his support for the flagship cryptocurrency, arguing that BTC will hit the $100,000 price tag this year.

Key Bitcoin Levels to Watch — May 10

Bitcoin suffered a monstrous sell-off yesterday, as more whales dumped their BTC for safer assets amid growing concerns about global economic growth.

BTCUSD – 4-Hour Chart on Gemini. Source: TradingView.

The benchmark cryptocurrency tapped its lowest point since July 2021, printing a low of $29,750 in the Asian market open yesterday. The cryptocurrency has since rebounded to the $32,000 region, where it currently clings.

There are debates about whether the flagship cryptocurrency has bottomed out with the recent crash below the critical $30,000 line. The coming hours and days will be all about recovery for the cryptocurrency as it eases out of oversold conditions. Meanwhile, the Fear and Greed Index has now dropped to its lowest point since January 8, warranting some caution against aggressive bets.

Meanwhile, my resistance levels are at $33,000, $33,750, and $34,300, and my key support levels are at $31,000, $30,000, and $29,000.

Total Market Capitalization: $1.48 trillion

Bitcoin Market Capitalization: $612.4 billion

Bitcoin Dominance: 41.2%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.