El Salvador buys 20 more Bitcoins in recent dip as Friday’s options expiry hint at fresh rally

  • Post the recent purchase, the El Salvador Treasury now holds a total of $1,120 BTC.
  • With Friday’s Bitcoin options expiry, bulls can take the BTC price back above $60,000.

On Wednesday, October 27, Bitcoin (BTC) and the broader crypto market entered a strong correction slipping under $60,000 levels. The world’s largest crypto has corrected nearly 12 percent from its all-time high last week. As of press time, Bitcoin is trading 3.1 percent down at a price of $58,945 with a market cap of $1.112 trillion.

El Salvador has made the most of the recent Bitcoin price dip adding 420 more Bitcoins worth a staggering to its treasury. El Salvador President Nayib Bukele official made this announcement on his Twitter handle. This is the first major BTC purchase from the Latin American country in over a month’s time.

Adding further, President Bukele was quick enough to note that the country has already started minting profits from its recent purchases. Explaining further he wrote:

How do we make a profit if 1 BTC = 1 BTC? We have a trust fund accounted in USD, but the trust is funded by both USD and BTC. When the BTC part revalues in comparison to the accounting currency (USD), we are able to withdraw some USD and leave the trust with the same total.

Post this recent purchase, the El Salvador Treasury holds a total of $1120 BTC worth a total of $66 million.

$3.2B Bitcoin options expiry on Friday

While the Bitcoin price has witnessed a dip under $60,000 on Wednesday, it might be here for a very short time. Bitcoin has formed a descending channel pattern since its all-time high of $67,000 last week.

But as per a CoinTelegraph report, bulls have good incentives in place to push the BTC price above $60,000. This could probably happen by Friday, October 29 when the $3.2 billion monthly options expiry settles. The publication notes that the October 29 expiry could be a tough test for the bears as any price above $58,000 could lead to $385 million in profits for the bulls. The publication notes:

At first sight, the $1.94 billion call (buy) instruments dominate the monthly expiry by 56% compared to the $1.24 billion put (sell) options. However, the 1.56 call-to-put ratio is deceiving because bears were caught by surprise and will have most of their put options wiped out if Bitcoin’s price remains above $58,000 at 8:00 am UTC on Oct. 29. Owning a put option, which is the right to sell Bitcoin at $55,000, becomes worthless if BTC price is trading above that level.

A majority of the euphoria surrounding the Bitcoin ETF launch has fizzled out a bit. As of press time, Bitcoin is trading at $58,945 with a market cap of $1.112 trillion.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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