El Salvador Marks Bitcoin Day as Bukele Buys 21 BTC Amid Market Warnings

El Salvador’s President Nayib Bukele marked Bitcoin Day with a symbolic purchase of 21 BTC, worth about $2.33 million at current prices. The gesture commemorates September 7, 2021, when El Salvador became the first nation to adopt Bitcoin as legal tender, a move that made global headlines and cemented the country’s reputation as a crypto pioneer.

This year’s celebration arrives at a tense moment for Bitcoin markets. While El Salvador positions Bitcoin alongside gold in its reserves strategy, questions remain. The IMF has expressed skepticism over the country’s transparency, and analysts warn of seasonal weakness. Timothy Peterson, author of Metcalfe’s Law as a Model for Bitcoin’s Value, noted that September 8 has historically been one of Bitcoin’s worst-performing trading days, with losses 72% of the time and a 90% chance of a down month if that day closes negative.

Still, long-term believers see opportunity. Whale watchers note that $10 billion in Bitcoin shorts could be liquidated if prices hit $117,000, while supply constraints remain central to the bullish thesis. With only about two million BTC actively circulating, some argue that adoption fears are overblown and scarcity could accelerate price discovery.

Bukele is not alone in his conviction. MicroStrategy co-founder Michael Saylor, who has turned his company into the largest corporate Bitcoin holder with more than 636,000 BTC, hinted at further accumulation. Supporters see his strategy as a Wall Street proxy for Bitcoin exposure, though critics question the risks of its debt-driven model.

El Salvador’s Bitcoin Day once again highlights the clash between symbolism and market reality. While Bukele and Saylor double down on their bets, history suggests September may test their faith.