After Bitcoin (BTC) recently surpassed the $100,000 mark, Salvadoran President Nayib Bukele took to social media to rejoice in the bet his country is making in 2021.
Then the small Central American country made the cryptocurrency legal tender and created a treasury that now holds almost six thousand BTC.
When the world’s largest digital asset by market capitalization reached the highly anticipated milestone, it pushed the value of El Salvador’s BTC wallet past $600 million, a staggering return of 123.67 % on its investment of $269.7 million.
The historic breakthrough of Bitcoin
On December 5, President Bukele took to X to showcase the nation’s crypto holdings, revealing an unrealized profit of $333.6 million.
– Nayib Bukele (@nayibbukele) December 5, 2024
The post sparked a wave of reactions online, with users praising Bukele’s foresight in adopting Bitcoin. Billionaire Elon Musk, who was chosen by US President-elect Donald Trump to co-lead the new Department of Government Effectiveness (DOGE), called the achievement “impressive”, while others hailed the move as “legendary” with long-term potential. benefits for El Salvador.
However, since hitting an all-time high price (ATH) of $103,679, Bitcoin has retreated around the $98,000 level, reducing the value of El Salvador’s reserve to a still remarkable $556.4 million. .
The country has purchased one BTC every day since 2022. During this period, it has accumulated a total of 5,942 BTC, with President Bukele promising to continue increasing this number until Bitcoin becomes “unaffordable with fiat currencies” .
Despite this progress, not all Salvadorans are reaping the benefits. A recent Associated Press report found that many cashed in on a $30 BTC bonus offered by the government when digital wallets were introduced, opting for immediate cash over potential long-term gains.
Furthermore, critics such as former Central Bank of El Salvador director Carlos Acevedo pointed out that while the profits were impressive, they would not be realized until Bitcoin was sold.
President Bukele has blamed his political opponents for dissuading citizens from adopting crypto, saying it deprives many of them of significant financial gains. On Facebook he wrote:
“Not only was the opposition terribly wrong with Bitcoin, but, unlike other issues (on which they were also wrong), this time, their opposition resonated with many.”
BTC continues to rise on the “Trump pump”
While Bitcoin is down 5% from its ATH, its recent meteoric rise has occurred against a backdrop of global events, including Donald Trump’s election victory in November. The pro-crypto president has promised policies to retain and expand the U.S. government’s holdings of BTC, fueling optimism in the virtual currency market.
The boost beyond $100,000 was apparently provided by Trump’s selection of crypto advocate Paul Atkins as the next chairman of the Securities and Exchange Commission (SEC) to replace the much-maligned Gary Gensler.
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