A South American country is among the bitcoin investors to benefit greatly from the Donald Trump-fueled cryptocurrency bull market as its digital asset portfolio reaches new heights, analysts report.
The value of El Salvador Bitcoin Holdings rose to $632 million after the top cryptocurrency reached a new all-time high of $106,488 per coin.
Portfolio increased by more than 133%
President of El Salvador Nayib Bukele was thrilled To share on his X account the huge gains his country achieved by investing in Bitcoin, as the price of the cryptocurrency exceeded $106 thousand.
Bukele proudly posted on social media that the South American country’s Bitcoin wallet rose 134% to $632 million. Alpha cryptocurrency has reached another milestone, reaching a record high of $106,488, boosting the value of El Salvador’s cryptocurrency holdings.
– Nayib Bukele (@nayibbukele) December 16, 2024
The South American president showed in his post that the country earned more than $350 million from its investment in Bitcoin, benefiting from the recent rise of cryptocurrencies.
Bukele designed the country’s investment strategy in Bitcoin, with El Salvador purchasing 5,966 BTC which was initially worth $270 million. Now, Bitcoin holdings in the country stand at $632 million Bitcoin price It exceeded $106,000.
Bitcoin as legal tender
In 2021, El Salvador announced that it had adopted Bitcoin as legal tender in the country, making the South American country the first country to take this step.
Bukele believes that Bitcoin will allow the country to become less dependent on the US dollar, adding that cryptocurrencies can be used to promote financial inclusion and drive economic growth.
BTC market cap currently at $2.06 trillion. Chart: TradingView.com
However, many of the country’s citizens have been skeptical about cryptocurrencies, raising concerns about the volatility associated with digital assets.
Doubts about Bitcoin deepened in 2022 after the price of Bitcoin fell below $17,000, making Salvadorans more concerned about the investment strategy.
But now, Bukele’s cryptocurrency gamble appears to have paid off as the value of the country’s cryptocurrency portfolio has surpassed $600 million.
BTC price retreats to $104k in the last 24 hours. Source: Coingecko
BTC price retreats to $104k in the last 24 hours. Source: The International Monetary Fund calls on El Salvador to reconsider
El Salvador may have achieved a milestone with its Bitcoin investment. However, International Monetary Fund The International Monetary Fund (IMF) remains unconvinced by the massive profits from cryptocurrencies, and is urging the Bukele administration to reconsider its position on Bitcoin.
Analysts believe that cryptocurrencies remain a double-edged sword due to their volatility, noting that the current price of cryptocurrencies may be impressive but its value may also decline.
Bukele continues to hold on to his BTC investments and has even announced a proposal to move some of the country’s BTC assets to a cold wallet stored securely within the country’s borders.
Moreover, he is also considering establishing a Bitcoin City which he envisions to be a future tax-free hub that will be powered by geothermal energy in the country.
Featured image from DALL-E, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.