By
Temitope Olatunji
April 26th, 2024
The heavy investment in Bitcoin from El Salvador and President Bukele has paid off as the country has gained profit of at least $50 million.
El Salvador’s Bitcoin reserves have now surged and are worth over $150 million following the asset’s recent rally. According to reports, El Salvador’s holdings have grown by more than $50 million.
Bitcoin recently hit a new all-time high (ATH), surpassing the previous record set in 2021. At the new ATH, El Salvador’s holdings are worth $164.7 million, indicating a more than $53 million increase in value.
El Salvador Defied Odds with Bitcoin
In 2021, El Salvador became the first country to officially adopt Bitcoin as legal tender. While some praised the move as full support for Bitcoin and crypto adoption, many criticized President Nayib Bukele. For instance, the International Monetary Fund (IMF) asked El Salvador to reverse the rule, stating that the country would face severe financial risks as a result. American financial services giant JPMorgan also warned of liquidity issues and other limitations. However, President Bukele remained resolute. In fact, he announced in 2022 that the country would start buying 1 Bitcoin every day.
According to nayibtracker.com, the reserves hold 2,856 Bitcoin, valued at more than $188.8 million.
In a recent X post, Bukele called out media platforms that criticized his Bitcoin purchases, but have not talked much about the gains.
“When Bitcoin’s market price was low, they wrote literally thousands of articles about our supposed losses. Now that Bitcoin’s market price is way up, if we were to sell, we would make a profit of over 40% (just from the market purchases), and our main source of BTC is now our citizenship program,” Bukele wrote.
However, the president added that there was no plan to sell because 1 BTC = 1 BTC then and now. He added:
“…but it’s very telling that the authors of those hit pieces, the “analysts”, the “experts”, the “journalists”, are totally silent now. Remember this next time they spill lies again about El Salvador.”
Bitcoin and ETFs
Bitcoin’s recent crash after briefly hitting a new ATH was felt across several tokens in the market. In response, assets like Dogecoin (DOGE) and Shiba Inu (SHIB) fell 30% and 40%, respectively, on Binance. Leveraged traders felt the most heat as Coinglass data showed $1 billion liquidated across the market. Long positions accounted for more than $800 million of the liquidations.
Bitcoin’s rally is mostly tied to the heavy trades recorded in the spot BTC exchange-traded fund (ETF) market. The funds have made such a buzz that the Arizona State Senate is exploring crypto investments in state pension funds. According to a resolution in February, which passed 16-13, state agencies are to consider adding spot BTC ETFs to their portfolios. This affects the Public Safety Personnel Retirement System (PSPRS) and the Arizona State Retirement System (ASRS).
If the House also passes the resolution, both pension outfits would have to prepare comprehensive reports. The report will include an assessment of the potential benefits, risks, and feasibility of including spot Bitcoin ETFs in pension funds.