As an experienced financial analyst, I find El Salvador’s move to adopt Bitcoin as legal tender and create a proof-of-reserve website an innovative step towards financial inclusion and attracting financial innovation. The country’s goal of adding 1 BTC to its treasury every day is commendable, especially since they started buying Bitcoin in September 2021.
El Salvador unveiled a new transparency platform showcasing real-time information about its Bitcoin reserves using on-chain data.
El Salvador’s digital Bitcoin Treasury offers up-to-the-minute information on the country’s Bitcoin holdings. Officially, Central America’s smallest member state possesses 5,748 Bitcoins, equivalent to around $360 million, with the cryptocurrency trading above $62,700 at 8:20 a.m. UTC.
As a researcher, I’ve discovered that El Salvador has recently purchased seven Bitcoin units with a value exceeding $438,000 during the last week. Moreover, within the past month, they have acquired an additional 24 Bitcoin units worth approximately $1.5 million. These findings were obtained from the relevant data on the website.
The purchases remain in line with El Salvador’s goal of adding 1 Bitcoin to its treasury every day.
As a financial analyst, I’d put it this way: In September 2021, I was part of the team that made history when El Salvador became the pioneering nation to recognize Bitcoin as legal tender. Our primary objective was to enhance financial inclusion for our population, streamline remittance payments, and stimulate financial innovation.
After Bitcoin plummeted from its record-breaking price of $69,000 in November 2021 following the failure of the FTX exchange, President Nayib Bukele’s decision to adopt Bitcoin as El Salvador’s legal tender drew heavy criticism. The value of the Central American country’s Bitcoin holdings significantly decreased, with prices reaching a low of $16,000 during the market downturn.
El Salvador sitting on $57 million of unrealized BTC profit
Since 2021, El Salvador has been systematically buying Bitcoins for an average price of $43,097 per coin. Now that the Bitcoin price is above $62,000, El Salvador’s Bitcoin holdings have generated an estimated profit of over $57.4 million based on current market values, as indicated by the Nayib Bukele Portfolio Tracker.
Expert: El Salvador’s Bitcoin reserves may prove vital for the country, as per Tim Draper’s perspective shared with CryptoMoon. With Bitcoin valued at $100,000 each, El Salvador could potentially achieve financial autonomy and repay debts to the International Monetary Fund.
Several well-known cryptocurrency experts predict that Bitcoin’s price will exceed $100,000 during the 2024-2025 bull market. After the 2024 Bitcoin halving event, some analysts from Bitfinex believe the digital currency could reach a peak above $150,000, as stated in their research report obtained by CryptoMoon.
“Using a straightforward regression model, we predict a 160% post-halving price surge in the next 14 months, taking the price to between $150,000 – $169,000.”
As a researcher studying the Bitcoin market, I believe the price action will largely be influenced by institutional investments in U.S. spot Bitcoin exchange-traded funds (ETFs). These inflows have recently turned positive after three consecutive weeks of net outflows. Last week alone, these ETFs reportedly attracted $413 million in net inflows, as indicated by Dune Analytics’ data.
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2024-05-13 12:38