The Central American nation of El Salvador has made an impressive profit thanks to its large Bitcoin holdings. Hundreds of millions of dollars have poured into the nation that recognized Bitcoin as legal cash when its value soared beyond $66,000 not long ago.
Following Bitcoin’s jump to $66,000 on May 16, 2024, El Salvador’s earnings have grown dramatically, proving that the country’s bold Bitcoin investment is paying off. The nation has actively amassed a mind-boggling quantity of Bitcoin during the last three.
El Salvador officially recognized Bitcoin as legal cash in 2021 despite strong opposition from the IMF. Since then, the nation’s Bitcoin reserves have grown steadily, with citizens buying and mining more of the money.
The Bitcoin office in El Salvador reports that the nation now has 5,751 BTC, which, at the current price, is worth almost $379 million. Utilizing its volcanic geothermal energy, the Central American nation has mined 474 Bitcoins, with a combined value of around $29 million, since 2021. This green energy initiative reflects the country’s commitment to reducing its environmental impact.
The Central American nation had considerable gains in March, when Bitcoin’s price hit a new record high of over $73,000; however, the country saw a little decline when Bitcoin’s price lost some of its gains and traded below $60,000. The country’s earnings have been rising consistently recently, thanks to Bitcoin’s recent surge.
El Salvador’s president, Nayi Bukele, is an outspoken supporter of Bitcoin and has long pushed for its use in the country’s economy to spur development and broaden access to banking services. On February 2, 2024, President Bukele said that the nation would not be selling its Bitcoin holdings. Rather, it plans to add to its digital asset reserve on an ongoing basis.
As of this past week, Bitcoin has not risen over $66,000 since April 24, 2024. With a gain of 6.74 percent in the last 24 hours, the pioneer cryptocurrency is now trading at $65,993.
The cryptocurrency suffered a severe decline after the April 20 Bitcoin halving event, losing much of the gains it had achieved during its March rise. Spot Bitcoin ETF demand was over the roof while Bitcoin’s value was surging.
Crypto expert Ali Martinez claims that the market for cryptocurrencies is still in its infancy, pointing out that Bitcoin was just 25 days after its halving and speculating that the price of the cryptocurrency might go even higher as negative emotion fades.
The increasing interest from investors and crypto traders is seen in the recent considerable upward momentum in Bitcoin’s daily trading volume. The 24-hour trading volume of the cryptocurrency, which was over $42.3 billion, increased by almost 70.27 percent. Its total market valuation has also increased by 6.56%, or nearly $1.3 trillion, in the last 24 hours.
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