After Bitcoin (BTC) recently went past the $100,000 milestone, El Salvador President Nayib Bukele took to social media to bask in the glory of a gamble his country made in 2021.
Then, the small Central American nation gave the cryptocurrency legal tender status and established a treasury that now holds almost six thousand BTC.
When the world’s largest digital asset by market capitalization hit the highly anticipated milestone, it pushed the value of El Salvador’s BTC portfolio beyond $600 million, a staggering 123.67% return on its $269.7 million investment.
Bitcoin’s Historic Breakthrough
On December 5, President Bukele took to X to showcase the national crypto holdings, revealing an unrealized profit of $333.6 million.
https://t.co/QVvFbQ7woa pic.twitter.com/WiOAYg6Ztx
— 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 has been chosen by U.S. President-elect Donald Trump to co-head the new Department of Government Efficiency (D.O.G.E.), called the achievement “impressive,” while others hailed the move as “legendary” with potential long-term benefits for El Salvador.
However, since attaining an all-time high (ATH) price of $103,679, Bitcoin has retreated to around the $98,000 level, reducing the value of El Salvador’s stash to a still remarkable $556.4 million.
The country has been buying one BTC each day since 2022. In that time, it has amassed a total of 5,942 BTC, with President Bukele promising to keep adding on to the number until Bitcoin becomes “unaffordable with fiat currencies.”
Despite the achievement, not all Salvadorians are reaping the rewards. A recent Associated Press report revealed that many cashed out a $30 BTC bonus offered by the government when digital wallets were introduced, opting for immediate cash over potential long-term gains.
Further, critics such as El Salvador’s former Central Bank head Carlos Acevedo noted that while the profits were impressive, they remain unrealized until the Bitcoin is sold.
President Bukele has blamed his political opponents for dissuading citizens from embracing crypto, claiming it deprived many of them of significant financial gains. On Facebook, he wrote:
“Not only was the opposition terribly wrong with Bitcoin, but, unlike other issues (where they were also wrong), this time their opposition did affect many.”
BTC Continues to Ride the “Trump Pump”
While Bitcoin is 5% off its ATH, its recent meteoric rise has come against a backdrop of global events, including Donald Trump’s election victory in November. The pro-crypto president has pledged policies aimed at retaining and expanding the U.S. government’s BTC holdings, fueling optimism in the virtual currency market.
The nudge past $100,000 was seemingly provided by Trump’s selection of crypto advocate Paul Atkins as the next Securities and Exchange Commission (SEC) chair to replace the much-maligned Gary Gensler.
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