December 5, 2023

El Salvador's Bitcoin Investment Gains $3 Million in Profit Amid Recent Price Surge

Following the latest uptick in bitcoin's value, El Salvador's significant investment in the cryptocurrency has become profitable by over $3 million.

President Nayib Bukele of El Salvador announced on Monday that the country's substantial investment in bitcoin has now yielded a profit exceeding $3 million. This financial upturn coincides with the recent surge in BTC prices, reaching an 20-month high of $42,000. Bukele also emphasized that the government has no plans to divest its bitcoin holdings.

In a Monday post on the X platform, President Nayib Bukele shared that El Salvador's bitcoin investment has become profitable due to the recent rally pushing the cryptocurrency past the $42,000 mark. According to his statement, selling the BTC holdings would result in a profit of over $3 million for El Salvador.

Despite the positive financial outcome, Bukele reiterated that El Salvador remains committed to holding onto its BTC assets, underscoring that potential fluctuations in the cryptocurrency's value will not sway the country from its long-term plans.

This marks a significant reversal of fortune for El Salvador, which faced a loss of approximately $16 million just three weeks ago.

In 2021, El Salvador made history by becoming the first country to adopt bitcoin as legal tender, a groundbreaking decision spearheaded by Bukele. Despite facing scrutiny both domestically and internationally, the Central American nation, led by Bukele, continues to strongly support bitcoin, actively investing in the cryptocurrency as part of its strategy to utilize technology for financial inclusion and economic development.

El Salvador's achievement of profitability in its bitcoin investment coincided with the recent surge in the value of the world's largest cryptocurrency. Notably, bitcoin briefly surpassed the $42,000 threshold on Monday before settling around $41,500. This marked the first time bitcoin reached this level since April 2022.

The recent surge in bitcoin prices is fueled by optimism surrounding the potential approval of a spot ETF by the US Securities and Exchange Commission (SEC) by January 10. If approved, it would represent the first such ETF in the US, with experts anticipating a favorable decision this time.

Additionally, cryptocurrencies and other risk assets have attracted investor interest amid growing expectations that the Federal Reserve has concluded its rate-hiking cycle, with some predicting potential rate cuts in the coming year.

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