After Bitcoin (BTC) recently surpassed the $100,000 milestone, El Salvador President Nayib Bukele took to social media to bask in the glory of a bet his country made in 2021.
The small Central American nation then granted 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 reached the long-awaited milestone, it boosted the value of El Salvador’s BTC portfolio beyond $600 million, a staggering 123.67% return on its investment of 269.7 million dollars.
Bitcoin’s historic advance
On December 5, President Bukele took X to showcase national cryptocurrency holdings, revealing an unrealized gain of $333.6 million.
— 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, chosen by US President-elect Donald Trump to co-lead the new Department of Government Efficiency (DOGE), called the achievement “impressive”, while others praised the move as “legendary” with potential to long term. Benefits for El Salvador.
However, since reaching 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 notable $556.4 million.
The country has been buying one BTC every day since 2022. In that time, it has accumulated a total of 5,942 BTC, and President Bukele promised to continue increasing the figure until Bitcoin becomes “unaffordable with fiat currencies.”
Despite the achievement, not all Salvadorans are reaping the fruits. A recent Associated Press report revealed that many cashed in on a $30 BTC bonus offered by the government when digital wallets were introduced, opting for immediate cash rather than potential long-term gains.
Furthermore, critics such as former director of the Central Bank of El Salvador, Carlos Acevedo, noted that while the gains were impressive, they will not be realized until Bitcoin is sold.
President Bukele has blamed his political opponents for discouraging citizens from adopting cryptocurrencies, claiming that this deprived many of them of significant financial gains. On Facebook, he wrote:
“Not only was the opposition terribly wrong about Bitcoin, but unlike other issues (where they were also wrong), this time their opposition did affect many.”
BTC continues to take advantage of the “Trump bomb”
While Bitcoin is at a 5% discount to 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 promised policies aimed at retaining and expanding the US government’s BTC holdings, fueling optimism in the virtual currency market.
The push to surpass $100,000 was apparently provided by Trump’s selection of cryptocurrency advocate Paul Atkins as the next chairman of the Securities and Exchange Commission (SEC) to replace the much-maligned Gary Gensler.
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