El Salvador president Nayib Bukele has revealed that his country’s Bitcoin investments have turned profitable as the cryptocurrency pushed above the $40,000 mark for the first time in over a year.
The country’s Bitcoin investments have proven to be quite lucrative as President Bukele seeks re-election against the backdrop of this rally.
El Salvador’s Bitcoin Investments Register Surge
According to Bukele, El Salvador’s Bitcoin investments have registered a profit of 3%, which translates to around $3.6 million. The president of El Salvador also emphasized a commitment to a long-term strategy when it came to its Bitcoin investments and confirmed that the government did not plan to divest its Bitcoin holdings any time soon.
“Of course, we have no intention of selling; that has never been our objective… We are fully aware that the price will continue to fluctuate in the future; this doesn’t affect our long-term strategy.”
Bukele is seeking re-election and has stepped down as president to focus on his re-election campaign. During his presidency, Bukele purchased a considerable amount of Bitcoin, making it a part of the national treasury investment. By September 2021, El Salvador’s Bitcoin investments stood at $10.3 million. However, since then, its Bitcoin investments had nosedived into the red, as the bear market forced the value of Bitcoin and the value of El Salvador’s Bitcoin investments by more than half.
El Salvador Added More BTC During Bear Market
Despite the market downturn, El Salvador doubled down on its Bitcoin strategy and continued to add more BTC to its holdings. During the bear market, the country had purchased around $103.9 million worth of Bitcoin. This investment was made despite the price of Bitcoin continuing to drop. However, the strategy seems to have paid off, with the country’s Bitcoin investments finally turning a profit.
“With the current #Bitcoin market price, if we were to sell our #Bitcoin, we would not only recover 100% of our investment but also make a profit of $ 3,620 277.13 USD (as of this moment).”
Thanks to its investments in Bitcoin, El Salvador has become an important player in the cryptocurrency space. The country was also the first to adopt Bitcoin as a legal tender, allowing holders to use the cryptocurrency to buy and sell goods freely. The International Monetary Fund has stated that El Salvador’s Bitcoin adoption has been limited. However, it observed that the risks associated with it are limited and have not yet materialized.
Bitcoin Price Rally
Bitcoin has seen a considerable surge during 2023 as hopes for a bullish phase in the crypto markets continue to increase. The world’s largest cryptocurrency has registered an increase of nearly 60% over the past six months. The past week has seen Bitcoin register an increase of 12.39%, with the cryptocurrency demolishing the prospect of any resistance at $40,000, crossing the level on the 4th of December. The Bitcoin price has since pushed past the $41,000 level as well and is currently trading at $41,748 and knocking at the doors of $42,000.
Markus Thielen, research head at Matrixport, had stated in a recent note that all three previous crypto bear markets were followed by a three-year bull cycle. They stated that this time would be no different, with Bitcoin expected to reach $60,000 by April and $125,000 by the end of 2024.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
