Central American country, El Salvador has realized significant profits from its extensive Bitcoin reserve. The country which previously accepted Bitcoin as a legal tender has now made hundreds of millions of dollars in gains as Bitcoin surged past $66,000 recently.
El Salvador Bitcoin Profits Soar
El Salvador’s audacious Bitcoin bet continues to pay off as the country’s profits have risen significantly following the cryptocurrency’s surge to $66,000 on May 16, 2024. Over the past three, the country has aggressively accumulated a staggering amount of BTC.
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Against all criticism and discouragement from the International Monetary Fund (IMF), El Salvador adopted Bitcoin as a legal tender in 2021. Since then, the country has continually increased its Bitcoin reserves, acquiring the cryptocurrency by any means either through direct purchase or mining.
According to El Salvador’s Bitcoin office, the country holds about 5,751 BTC valued at approximately $379 million using the current price of Bitcoin. Since 2021, the Central American country has mined a total of 474 Bitcoin worth about $29 million, embracing green energy by utilizing its volcanic geothermal energy to facilitate mining activities.
In March, when Bitcoin’s price had reached a new all-time high above $73,000, the Central American country had yielded significant profits, experiencing a slight drop when Bitcoin’s price gave up gains to trade below the $60,000 price mark. Now, with Bitcoin surging once more, the country’s profits are increasing steadily.
El Salvador President Nayi Bukele, a vocal advocate for Bitcoin, has championed the cryptocurrency as a means to promote economic growth and improve financial inclusion in the country. President Bukele disclosed earlier on February 2, 2024, that the country does not plan to sell its Bitcoin assets. Instead, it aims to continuously incorporate more into its digital asset reserve.
Bitcoin Surges Above $65,000
Bitcoin rose above $66,000 this week, marking the first time since April 24, 2024. The pioneer cryptocurrency has recorded a 6.74% increase over the past 24 hours and is presently trading at $65,993.
Following the Bitcoin halving event on April 20, the cryptocurrency experienced a massive downturn, giving back the majority of its gains made from its rally in March. At the time, Bitcoin’s skyrocketing value was driven by the soaring demand of Spot Bitcoin ETFs.
According to crypto analyst, Ali Martinez, the crypto market is still very early, highlighting that Bitcoin was just 25 days post Bitcoin halving and suggesting that the cryptocurrency could surge even higher once bearish sentiment diminishes.
Presently, Bitcoin’s daily trading volume has experienced a significant upward momentum, highlighting the growing interest from investors and crypto traders in the industry. The cryptocurrency’s 24-hour trading volume of approximately $42.3 billion has risen by more than 70.27%. Additionally, its overall market capitalization has jumped by more than $1.3 trillion, marking a daily increase of 6.56%.
Chart from Tradingview.com
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