Bitcoin climbs back above $60,000 as El Salvador buys the low

The price of bitcoin rose back above $60,000 on Monday morning after earlier falling to its lowest level since October 15.

The world’s largest crypto-currency traded lower as the correction from its all-time high last week continued to accelerate back below $60,000, however, with news that El Salvador is “buying the dip,” bitcoin has recovered the $60,000 handle.

El Salvador President Nayib Bukele announced on Twitter Inc (NYSE:TWTR) that the Central American country bought an additional 420 bitcoins during the latest downturn. At an average price of $60,000, the purchase would be equivalent to about $25 million.

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

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

Leveraged Bitcoin ETFs to be rejected?


Elsewhere in the bitcoin world, it appears that the U.S. Securities and Exchange Commission (SEC) is not ready to approve leveraged bitcoin ETFs, despite the popularity of the first 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 have been quick to bring competing products to market, but the prospect of a leveraged Bitcoin fund launching in the near future seems far off.

According to the Wall Street Journal, the SEC has asked Valkyrie Investments not to pursue its proposed leveraged Bitcoin ETF. On Tuesday, the fund manager proposed launching a fund that would use 1.25 times leverage, seeking to amplify returns.

The SEC has reportedly indicated that it wants to limit new bitcoin-related products to those that offer unleveraged exposure to bitcoin futures.