Key Points
- El Salvador’s Bitcoin reserves have increased to over $150 million, with profits exceeding $50 million.
- Bitcoin’s recent surge to a new all-time high has significantly boosted the value of El Salvador’s holdings.
El Salvador’s Bitcoin reserves have seen a significant increase, now valued at over $150 million. This surge comes after the recent rally of the digital asset. Reports indicate that the country’s Bitcoin holdings have grown by more than $50 million.
Bitcoin recently hit a new all-time high (ATH), surpassing its previous record set in 2021. As a result, El Salvador’s Bitcoin holdings are now worth $164.7 million, reflecting a value increase of more than $53 million.
El Salvador’s Bitcoin Adoption
In 2021, El Salvador made history by becoming the first country to officially adopt Bitcoin as legal tender. Despite criticism from entities like the International Monetary Fund (IMF) and financial services giant JPMorgan, President Nayib Bukele stood firm on his decision. In 2022, he announced that the country would start purchasing 1 Bitcoin every day.
According to nayibtracker.com, El Salvador’s reserves now hold 2,856 Bitcoin, valued at more than $188.8 million. In a recent post, President Bukele addressed critics of his Bitcoin purchases, pointing out that they have been silent about the recent gains.
Bitcoin’s Impact on the Market
Bitcoin’s recent crash after hitting a new ATH affected several tokens in the market. Assets like Dogecoin (DOGE) and Shiba Inu (SHIB) fell 30% and 40% respectively on Binance. Leveraged traders felt the most impact, with Coinglass data indicating $1 billion liquidated across the market.
Bitcoin’s rally has been largely tied to heavy trades in the spot BTC exchange-traded fund (ETF) market. The buzz around these funds has been so significant that the Arizona State Senate is exploring crypto investments in state pension funds. If the House also passes the resolution, both pension outfits would have to prepare comprehensive reports assessing the potential benefits, risks, and feasibility of including spot Bitcoin ETFs in pension funds.
