El Salvador’s Bitcoin Bag Turns Profitable, President Bukele Reiterates No-Sell Signal

UTC by Steve Muchoki · 3 min read
El Salvador’s Bitcoin Bag Turns Profitable, President Bukele Reiterates No-Sell Signal
Photo: Nayib Bukele / Facebook

The recent Bitcoin price pump to $42,000 has seen El Salvador’s BTC investment currently at a profit of about $3.6 million.

After El Salvador adopted Bitcoin (BTC) alongside the United States dollar as a legal tender in 2021, the country received significant criticism with some economists signaling a doomsday. However, President Nayib Bukele has remained steadfast since the country airdropped Bitcoins with $30 to every eligible citizen. Moreover, the country has put in place Bitcoin mining infrastructure with the help of renewable energy sources, developed a Bitcoin city, and issued Bitcoin bonds that have turned successful, per Wall Street analysts.

El Salvador’s Bitcoin Investment Update

Following the 60 percent Bitcoin price spike in the past three months to hit a new yearly high of around $42k, most of the Bitcoin holders have turned profitable. According to President Bukele, the country’s Bitcoin investments are in ‘the black’, signaling notable profitability. To begin with, President Bukele indicated that the country’s Bitcoin investments have not only broken even but also turned profitable by more than $3.6 million. However, President Bukele reminded his critics and supporters that the country does not intend to take any profit despite the heightened volatility.

“…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 noted.

Earlier this year when Bitcoin price revisited the 2022 bear market lows, President Bukele announced that the country world would be making Bitcoin daily purchases. As a result, El Salvador now holds Bitcoins worth approximately $130.88 million, with a net profit of about 2.84 percent.

Meanwhile, President Bukele has urged the critics of the Bitcoin adoption agenda to retract their statements and offer apologies. Otherwise, he also urged traditional financial institutions like the World Bank to acknowledge that the country is not at risk of defaulting on its loans and it is a profitable nation.

Market Outlook and Price Action

Bitcoin price has continued to outperform traditional stock markets and indexes, thus attracting deep-pocketed investors. With the banking crisis recorded in the United States earlier this year, the long-term success of Bitcoin has been confirmed unanimously by most economists. Moreover, Bitcoin is a decentralized digital currency that is well positioned to dethrone the United States dollar as the global reserve currency and gold as the best safe haven.

Moreover, the fourth Bitcoin halving, which is scheduled during the first half of 2024, will reduce Bitcoin’s annual inflation by half to less than 1 percent. On the other, the supply of gold in the universe is uncapped and the United States dollar continues to struggle to lower its inflation to 2 percent. As a result, Bitcoin price is expected to rally exponentially beyond its all-time high by mid-2025 as the heightened demand coupled with a supply shock triggers the next bull rally.

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