March 18, 2024

El Salvador Pledges to Keep Purchasing Bitcoin Until it Becomes Unaffordable

President Nayib Bukele of El Salvador reiterates the nation's unwavering commitment to acquiring one BTC daily, reflecting a resolute stance on embracing bitcoin.

President Bukele continues to demonstrate El Salvador's dedication to its pioneering bitcoin acquisition initiative, with each day marked by the purchase of one bitcoin, a strategy initiated in November 2022. Initially met with skepticism from international financial bodies amid crypto market fluctuations, the decision has proven to be a shrewd move as bitcoin's recent surge in value has yielded substantial gains for the country.

Undeterred by market volatility, Bukele confirms El Salvador's indefinite continuation of its bitcoin Dollar-Cost Averaging (DCA) strategy. To date, the nation has invested over $15 million in acquiring 487 BTC, with an estimated average purchase price of around $31,000. This investment has since burgeoned to a value exceeding $32 million.

President Bukele articulates the longevity of the initiative, stating:

"The 1 bitcoin a day program continues until bitcoin becomes unaffordable with fiat currencies."

This steadfast commitment underscores El Salvador's resolve to integrate bitcoin into its economic fabric.

In a recent announcement on X, President Bukele unveiled El Salvador's substantial bitcoin reserves, likening it to "our first bitcoin piggy bank". The decision to safeguard these assets in a physical vault within national borders underscores the government's proactive approach to digital asset security.

The revelation of El Salvador's bitcoin holdings, surpassing previous estimations, sheds light on the nation's significant strides in Bitcoin adoption. When factoring in previous purchases and bitcoin earnings from various avenues, including its citizenship program, El Salvador's total holdings amount to 5,692 BTC, valued at $383 million.

Bukele's sentiments echo a broader trend of increased institutional interest in bitcoin. Recent data from Santiment reveals aggressive accumulation by wallets holding 10 to 10,000 BTC, amassing 154,160 BTC worth $10.6 billion over the past five weeks.

These acquisitions have played a pivotal role in bitcoin's recent price surge. Notably, entities like MicroStrategy have pursued substantial bitcoin acquisitions, with plans to expand its existing reserve through debt-financed strategies. Such moves underscore a growing confidence in bitcoin's long-term viability as a store of value and investment asset.

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