Bitcoin Back Over $60K as El Salvador Buys 420 BTC

After a swoon in recent days, the largest cryptocurrency bounced back after the Central American country bought the dip.

Oct 28, 2021 at 3:20 p.m. UTC
Updated Oct 28, 2021 at 8:34 p.m. UTC

Bitcoin (BTC) is making a recovery, its price up 4% in the last 24 hours and trading at around $61,000. This follows El Salvador’s government buying more bitcoin for its official account.

On Wednesday, El Salvadorian President Nayib Bukele tweeted that his government had “bought the dip,” adding an additional 420 BTC, which is equivalent to around $25 million. El Salvador’s treasury now holds an estimated 1,120 bitcoin, according to a Reuters report.

“Today the markets were buoyed by news of additional state-level purchases from El Salvador, indicating the country’s intentions to continue to acquire,” said Jason Deane, analyst at Quantum Economics.

Underlying sentiment remains extremely bullish for the top cryptocurrencies, especially bitcoin, according to Deane.

The world’s largest cryptocurrency by market capitalization reached an all-time high on Oct. 20 of around $66,900, a day after the first bitcoin futures exchange-traded fund (ETF) in the U.S. launched on the New York Stock Exchange. A week later, bitcoin’s price fell below the $60,000 mark before retaking the level early Thursday.

“After a legendary sell-off that was predominantly in altcoins, we are seeing some relief and a bounce off initial $58,000 support,” said Matthew Dibb, chief operating officer at Stack Funds.

Dibb predicted that “the next day will likely continue to be volatile, with a large options expiry happening tomorrow.”

Dibb expects bitcoin and ether (ETH) to surpass recent all-time highs within the next few weeks.

ETH, the native cryptocurrency of the Ethereum blockchain, reached an all-time high on Oct. 21 at $4,359. At press time, ETH was trading up 4.1% over the past 24 hours to $4,186.

Other altcoins rallying in the last 24 hours include meme coins dogecoin (DOGE), which is up 25%, and shiba inu (SHIB), which has surged 30%.

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Lyllah Ledesma is a reporter on CoinDesk's Markets team. She holds bitcoin, ethereum, and small amounts of other crypto assets.