May 13, 2024 at 03:42El Salvador, the first country to legalize Bitcoin as official tender in 2021, has unveiled a new website dedicated to tracking its Bitcoin reserves. The platform provides real-time insights into the country’s holdings using on-chain data.
As of the latest update, El Salvador holds 5,748 BTC, valued at approximately $360 million, with the current Bitcoin price hovering above $62,700 as of 8:20 a.m. UTC.
The nation has recently increased its Bitcoin holdings, acquiring seven BTC worth over $438,000 in the last week and 31 BTC worth $1.94 million over the past month, as detailed on the website. This aligns with the country’s strategy to accumulate one Bitcoin daily to its treasury.
The initiative was introduced under President Nayib Bukele’s administration in September 2021, aiming to enhance financial inclusion, streamline remittance payments, and foster economic innovation.
The brand new newsletter with insights, market analysis and daily opportunities.
Let’s grow together!
However, the decision faced significant scrutiny especially after Bitcoin’s price plummeted from its high of $69,000 in November 2021 following the FTX exchange collapse, dropping as low as $16,000 during the subsequent market downturn. This resulted in considerable losses for El Salvador’s Bitcoin investment.
Despite these fluctuations, El Salvador’s average purchase price of $43,097 per Bitcoin means it currently sits on an unrealized profit of more than $57.4 million, according to data from the Nayib Bukele Portfolio Tracker.
Venture capitalist Tim Draper commented to Cointelegraph on the potential of El Salvador’s Bitcoin strategy, suggesting that if Bitcoin reaches $100,000, the nation could achieve financial autonomy and manage its International Monetary Fund debts.
Many cryptocurrency analysts predict that Bitcoin could exceed $100,000 during the 2024 to 2025 bull market cycle, especially post the anticipated 2024 halving. Bitfinex analysts project a possible rise to between $150,000 and $169,000 within 14 months post-halving, based on a simple regression model.
The trajectory of Bitcoin’s price is also likely influenced by institutional investments, such as those from U.S. spot Bitcoin ETFs which have recently seen a resurgence in net inflows, accumulating $413 million in the past week, as reported by Dune Analytics.
9
