El Salvador Marks Bitcoin Day With Bold 21 BTC Purchase
El Salvador marked the fourth anniversary of its Bitcoin Law with a symbolic purchase of 21 BTC, just as analysts warned that September 8 often proves unfavorable for the cryptocurrency.
In brief
- El Salvador bought 21 BTC on Bitcoin Day, raising reserves despite IMF loan restrictions on new purchases.
- Analysts warn September 8 is historically bearish for Bitcoin, with losses in 72% of past years.
- MicroStrategy’s Michael Saylor hinted at more BTC buys, reinforcing the firm’s role as a Wall Street proxy.
El Salvador Buys 21 BTC to Commemorate Bitcoin Day
On September 7, President Nayib Bukele announced on X that El Salvador purchased 21 BTC. At current market prices of around $111,175 per coin, the transaction is valued at approximately $2.3 million.
The decision coincided with the anniversary of the country adopting Bitcoin as legal tender in 2021, a move that established El Salvador as the first nation to formally integrate Bitcoin into its economy. The symbolic purchase referred to Bitcoin’s fixed supply of 21 million coins.
The country’s Bitcoin Office also released a statement to mark the occasion. “El Salvador Celebrates Bitcoin Day! The Bitcoin Office is proud to have been building Bitcoin country for three of the four years since El Salvador made Bitcoin legal tender,” the post said.
Despite the public celebration, the purchase drew attention due to the conditions of El Salvador’s $1.4 billion International Monetary Fund loan signed in December 2024. The agreement required the government to stop buying Bitcoin using public funds and limit state-backed crypto services. Yet, Bukele’s announcement suggested continued accumulation of digital assets despite these restrictions.
Market Skepticism and Historical Seasonality Risks
While Bukele reiterated El Salvador’s long-term commitment, analysts cautioned that September 8 has historically been a weak trading day for Bitcoin. Timothy Peterson, author of Metcalfe’s Law as a Model for Bitcoin’s Value, explained the seasonal pattern.
On any given day, Bitcoin closes positive 53% of the time, with an average gain of +0.10%. By contrast, September 8 has been negative 72% of the time, with an average loss of -1.30%. Peterson also pointed out that when September 8 ends in the red, the entire month finishes lower 90% of the time.
This trend led some market watchers to suggest caution despite celebratory events. Reports indicated that over $10 billion in Bitcoin short positions could be at risk of liquidation if the asset climbs toward $117,000. This created tension between long-term bullish positions and short-term trading risks.
MicroStrategy’s Michael Saylor Signals Further Accumulation
The commemoration also coincided with renewed interest from major corporate Bitcoin holders. Michael Saylor, co-founder and executive chairman of MicroStrategy, hinted at fresh purchases. While he did not provide exact numbers, investors interpreted his statement as a sign that the company would expand its already large holdings.
MicroStrategy is known for being the largest corporate Bitcoin holder, with over 636,000 BTC. The company’s debt-driven acquisitions have often attracted both praise and criticism. Hedge fund veteran Fred Krueger commented that MicroStrategy’s approach should not be viewed as a Ponzi scheme, responding to public concerns over its leveraged strategy.
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Peter is a skilled finance and crypto journalist who simplifies complex topics through clear writing, thorough research, and sharp industry insight, delivering reader-friendly content for today’s fast-moving digital world.
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