Bitcoin edges back above $60K as El Salvador buys the dip

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imageCryptocurrency News8 hours ago (Oct 28, 2021 10:36)

© Reuters

By Samuel Indyk

Investing.com – The price of Bitcoin moved back above $60,000 on Thursday morning after earlier falling to its lowest level since 15th October.

The world’s largest cryptocurrency had been trading lower as the correction from its all-time high last week continued to accelerate on the drop below $60,000, however, with news that El Salvador was “buying the dip”, Bitcoin reclaimed the $60,000 handle.

El Salvador’s President Nayib Bukele announced on Twitter (NYSE:TWTR) that the Central American nation had bought an additional 420 Bitcoin amid the latest pullback. At an average price of $60,000, the purchase would equal roughly $25 million.

El Salvador became the first country to adopt Bitcoin as legal tender when its Bitcoin Law came into effect in September this year. The initial adoption of Bitcoin as legal tender was bumpy, to say the least, as protests were observed in the country by citizens who were angry at the introduction.

Earlier this week, the country also had to remove a pricing feature from its digital Bitcoin wallet Chivo as users discovered a loophole that allowed them to make profits on trades.

Elsewhere in the world of Bitcoin, it seems that the US Securities and Exchange Commission (SEC) isn’t going to be so quick in approving leveraged Bitcoin ETFs, despite the popularity of the initial products launched last week.

Bitcoin’s record high last week coincided with the launch of the first Bitcoin Futures ETF, the ProShares Bitcoin Strategy ETF (NYSE:BITO). Other fund managers were quick to come to market with competing products but the prospect of a leveraged Bitcoin fund being launched in the near future appears some way off.

According to the Wall Street Journal, the SEC has asked Valkyrie Investments not to proceed with plans for a leveraged Bitcoin ETF. On Tuesday, the fund manager proposed to launch a fund that would use 1.25 times leverage, effectively seeking to amplify the returns.

The SEC reportedly indicated it wants to limit new Bitcoin related products to those that provide unleveraged exposure to Bitcoin futures.

Bitcoin edges back above $60K as El Salvador buys the dip

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