- Bitcoin surges to new yearly high.
- President Bukele strikes back at critics.
- El Salvador now sits on significant unrealized profits.
Bitcoin has shown strength this week, topping the $64,200 level on Wednesday to print a new yearly high. The 24% surge since Monday has triggered a wave of bullish sentiment, particularly among long-term holders who held firm throughout the brutal crypto winter.
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Amid the renewed optimism, El Salvador‘s president, Nayib Bukele, took the opportunity to laud his countryโs Bitcoin bet. In response to past backlashes against El Salvadorโs progressive BTC stance, Bukele revealed a 40% unrealized profit, adding that the critics โare totally silent now.โ
Bitcoin Vindication
In a recent tweet, Bukele stated that he was subjected to a litany of hit pieces attacking El Salvadorโs Bitcoin bet during crypto winter. However, now the market has turned and the country is sitting on 40% profits, prominent critics and skeptics have fallen by the wayside.
The president added that El Salvadorโs citizenship program is now its main source of Bitcoin rather than direct purchases using treasury funds. El Salvador launched its โFreedom Visaโ program in December 2023, offering applicants citizenship for $1 million, payable in BTC or USDT.
Remaining defiant, Bukele stated that โwe wonโt sell [our Bitcoin,]โ a position he shares with MicroStrategy chair Michael Saylor, who often reiterates the companyโs intention to hold forever. Despite Bitcoinโs notorious price swings, Bukele confirmed his position by stating that โ1 BTC = 1 BTC.โ
Although Bukele remains steadfast that Bitcoin retains inherent value regardless of fiat price shifts, the recent upturn has massively swollen El Salvadorโs coffers in dollar terms.
El Salvadorโs Treasury Boosted
The market upswing has significantly boosted the value of El Salvadorโs treasury. According to nayibtracker.com, which tracks the country’s direct Bitcoin buys, El Salvador holds 2,849 BTC purchased at an average price of $42,505.
With the current BTC hovering around $62,500 at the time of writing, El Salvador is approximately $57 million in profit, equating to a gain of 47%. The difference in Bukeleโs 40% profit statement relates to BTC moving higher since posting the tweet.
On the Flipside
- El Salvador made BTC legal tender in September 2021, two months before the previous cycle top.
- Critics claim El Salvador had wasted taxpayers‘ money by buying BTC.
Why This Matters
While Bukele revels in the market flipping bullish, it’s important to note that financial markets are cyclical and, in the longer term, will see a return to pessimism. Nonetheless, as Bukele alluded to with his โ1 BTC = 1 BTCโ statement, it is clear that he is not thinking about Bitcoin in fiat terms.
Read about Bitcoinโs surge past $60,000 this week:
Bitcoin Hits $60K as It Closes in on ATH Ahead of Halving
Find out more on VeChainโs stab at incentivizing sustainability here:
