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El Salvador, using blockchain data to track the country’s Bitcoin assets, has introduced its own proof of reserve website to the public. El Salvador’s online Bitcoin Treasury provides real-time data about the country’s Bitcoin reserves. The Central American country officially owns approximately 5,748 Bitcoins, currently valued at about $360 million, with the recent Bitcoin purchase average over $62,700.
El Salvador Continues Buying Bitcoin
According to the website, El Salvador bought 7 Bitcoins worth over $438,000 last week, and a total of 31 Bitcoins worth $1.94 million in the last 30 days. These purchases continue in line with El Salvador’s goal of adding one Bitcoin to its treasury every day.
El Salvador became the first country to adopt Bitcoin as a legal tender in September 2021. The country aims to promote financial inclusion, facilitate more efficient remittance payments, and attract more financial innovation. President Nayib Bukele’s decision faced widespread criticism following Bitcoin’s fall from its all-time high of $69,000 in November 2021 after the collapse of the FTX exchange. El Salvador’s Bitcoin assets experienced a significant decline after Bitcoin’s bear market drop to $16,000.
El Salvador and Its Bitcoin Strategy
El Salvador has an average purchase price of $43,097 per Bitcoin since 2021. According to the Nayib Bukele Portfolio Tracker website, with Bitcoin trading transactions over $62,000, El Salvador has realized over $57.4 million in unrealized profits from its Bitcoin assets.
Prominent venture capitalist Tim Draper stated that El Salvador’s Bitcoin assets could be a significant lifeline for the country. According to Draper, if the Bitcoin price reaches $100,000, the country could soon become financially independent and pay off its debts to the International Monetary Fund.
Many popular crypto analysts predict that Bitcoin will exceed $100,000 during the 2024-2025 bull cycle. According to a research report shared by Bitfinex analysts, after the 2024 halving event, Bitcoin could see a cycle peak above $150,000:
“Using a simple regression model, we predict a 160% price increase over the next 14 months after the halving, with prices reaching between $150,000 and $169,000.”
Bitcoin’s price movement will largely depend on institutional entries from US spot Bitcoin exchange-traded funds, which turned positive after three consecutive weeks of net outflows. According to Dune Analytics, US Bitcoin ETFs gained a total of $413 million in net entries last week.
