El Salvador, the first country to recognize Bitcoin as legal tender, has rolled out a dedicated website to oversee its Bitcoin treasury. The online portal offers a real-time perspective on the country’s Bitcoin reserves, which currently rounds up to 5,748 BTC or approximately $360 million.
Moreover, the data reveals that El Salvador has added 7 BTC worth over $438,000 to its reserves in the past week, with a cumulative increase of 31 BTC valued around $1.94 million over the last month. This aligns with El Salvador’s objective to add 1 Bitcoin to its treasury each day as it aims to advance financial inclusion, efficient remittance payments, and foster financial innovation.
Despite criticism following Bitcoin’s plunge from an all-time high of $69,000 in November 2021 and the subsequent collapse of the FTX exchange, El Salvador has demonstrated unwavering faith in Bitcoin. The Central American country ended up in the red as Bitcoin dropped to as low as $16,000 during the bear market.
Nevertheless, El Salvador’s Bitcoin holdings having been acquired with an average buying price of $43,097 per BTC, has yielded an unrealized profit of over $57.4 million, with BTC trading now above $62,000. These holdings could provide a crucial financial boost for the nation, states popular venture capitalist Tim Draper. He contends that with Bitcoin price reaching $100,000, the country could gain financial independence, managing to clear off its International Monetary Fund loans.
The projection by various crypto analysts that BTC will cross the $100,000 milestone in the 2024 to 2025 bull cycle gives weight to Draper’s perspective. A research report shared by Bitfinex analysts with Cointelegraph suggests: “Using a straightforward regression model, we predict a 160% post-halving price surge in the next 14 months, taking the price to between $150,000 – $169,000.” The course of Bitcoin’s price will also hinge greatly on the institutional investments from the U.S. Bitcoin exchange-traded funds.