The Republican politician spent between $15,000 and $50,000 on a Bitcoin purchase in late January amid the price correction.
Rafael Edward “Ted” Cruz, the Republican senator from the US state of Texas, took advantage of the recent price drop seen in the digital currency market to acquire some Bitcoin (BTC).
According to new disclosures of the United States Senate, Cruz made a purchase of Bitcoin at the end of January, when the price of the main cryptocurrency was slipping below $40,000. The filing, dated February 4, shows that the senator acquired between $15,000 and $50,000 worth of BTC on January 25, through the platform. River.
According to data from CoinMarketCap, on the day of purchase, the price of the digital asset was between $36,000 and $37,000. The reversal came amid a steep bear market that saw Bitcoin collapse from a high near $70,000 in November 2021, to trade below $33,000 in January this year.
However, in the last few hours, Bitcoin has shot up to retake the $40,000 barrier. Assuming the senator from Texas hasn’t already sold his bitcoinor incurred short-term capital gains taxes, your investment would be earning you between $2,000 and $6,900, now that BTC is trading around $41,500.
Cruz is consistent with his comments
Cruz’s buying actions echo some of his statements in recent months in defense of cryptocurrencies. During 2021, the Canadian-born politician spoke out on several occasions in favor of Bitcoin and the digital currency industry.
In August, he sharply criticized a controversial provision included in the Biden administration’s Infrastructure Act that would impose stricter tax reporting rules on crypto brokers. Cruz, who introduced an amendment to remove the provision, argued that the legislative plan could curb the emerging cryptocurrency industry in the country and “inflict billions of dollars in damage”.
The senator had already publicly defended the crypto ecosystem in August, during a television interview on FoxNews. “I believe that [Bitcoin] it has a lot of potential. I think we’re seeing tremendous growth in him.”Cruz commented. He added that he considers inflation to be “part” of the reason why people are turning to cryptocurrency more and more.
The Republican also recently filed a resolution for merchants in the US Capitol accept cryptocurrency payments. Meanwhile, the state of Texas has been positioning itself as a crypto-friendly region for the sector. Last year, a law was passed in the state that recognizes the legality of digital currencies. At the same time, Texas has become an attractive hub for miners from Bitcoin following the exodus from China.
Cruz has not made any public comment on his investment in Bitcoinand it is unclear if this is his first crypto acquisition.
The truth is that Cruz is not the only American politician who has revealed holdings in digital assets or related actions. Members of Congress, including Democrats Jake Auchinloss of Massachusetts and Marie Newman of Illinois, and Republicans Jeff Van Drew of New Jersey and Barry Moore of Alabama, have also made similar moves.
Article by Hannah Estefanía Pérez / DailyBitcoin
Unsplash image edited in Canva
WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.