El Salvador Tracks Bitcoin Holdings Through New Website, Eyes $57.4M Profits
Summary:
El Salvador has launched a proof-of-reserve website to track its Bitcoin (BTC) holdings using real-time on-chain data. The nation officially owns 5,748 BTC, worth approximately $360 million. With an average buying price of $43,097 per BTC, El Salvador has an unrealized profit of over $57.4 million. This initiative aligns with their goal of adding 1 Bitcoin to its treasury daily, strengthening financial inclusion, and promoting economic innovation since Bitcoin was adopted as legal tender in September 2021.
El Salvador has initiated its exclusive proof-of-reserve online platform, equipped with different features to track the nation's treasury of Bitcoin (BTC) based on on-chain data. The digital Bitcoin Treasury of this Central American country offers real-time updates on their national BTC reserves. Presently, El Salvador officially maintains 5,748 BTC, with an estimated value of around $360 million, given that Bitcoin's trading value is beyond $62,700 as of 8:20 am UTC.
The past week has seen El Salvador purchasing seven BTC, valued above $438,000, and a total of 31 BTC, worth roughly $1.94 million, in the last thirty days, as reported by the website. These acquisitions are consistent with El Salvador's objective of adding a single Bitcoin to the national treasury each day.
El Salvador carved a place for itself in history by becoming the first nation to legally accept Bitcoin, back in September 2021. The goal of this move is to enhance financial inclusivity, streamline remittance payments, and stimulate more financial innovation. However, President Nayib Bukele's decision to do this faced significant backlash when Bitcoin's value took a tumbling fall from its former peak of $69,000 in November 2021, following the FTX exchange debacle. Consequentially, El Salvador's Bitcoin reserves suffered, dipping significantly in the red when Bitcoin plummeted to a low of $16,000 in the bear market.
Despite this, the country has continuously invested in Bitcoin since 2021, with an average acquisition price of $43,097 per BTC. With Bitcoin's current trading rate beyond $62,000, El Salvador has an unrealized profit of $57.4 million from its Bitcoin reserves, states the Nayib Bukele Portfolio Tracker website.
El Salvador's Bitcoin reserves could potentially be a significant financial boon for the nation, predicts well-known venture capitalist Tim Draper to Cointelegraph. According to Draper, the country might achieve financial independence soon and be able to settle its International Monetary Fund loans if Bitcoin's value surges to $100,000.
Several reputable cryptocurrency analysts propose that BTC could exceed the $100,000 limit in the 2024-2025 bull cycle. A research report by Bitfinex analysts shared with Cointelegraph anticipates a peak cycle above $150,000 after the 2024 halving of Bitcoin, stating, "Our simple regression model forecasts a price surge of 160% post-halving in the next 14 months, pushing the price between $150,000 - $169,000.”
Bitcoin's price movements will pivot primarily around the institutional cash inflows from the U.S. spot Bitcoin exchange-traded funds (ETFs), which recovered last week after three weeks of net outflows. As reported by Dune Analytics, U.S. Bitcoin ETFs garnered total net inflows worth $413 million in the past week.
Published At
5/13/2024 12:27:04 PM
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