Former president of El Salvador, Nayib Bukele, celebrated that the country's investment in Bitcoin (BTC) gained over $3 million in profit following the cryptocurrency's surge over $42,000 during the weekend.
Bitcoin has continued its climb in December. BTC price (usually looked online as BTC-USD) saw an increase that topped $42,145 this weekend, reaching a 19 month-high before pairing some gains on Monday.
"El Salvador's #Bitcoin investments are in the black!," Bukele wrote this Monday morning in his X account, using a financial term conveying that there is a profit in it.
"With the current Bitcoin market price, if we were to sell our Bitcoin, we would not only recover 100% of our investment but also make a profit of $3,620,277.13 USD (as of this moment). Of course, we have no intention of selling; that has never been our objective. We are fully aware that the price will continue to fluctuate in the future, this doesn't affect our long-term strategy," Bukele added.
The digital asset's surge follows a drastic fall from its all-time high of roughly $69,000 in November 2021 to less than $16,000 in 2022.
Ethereum (ETH), the second most largest crypto after Bitcoin, also experienced a significant surge, surpassing $2,200 for the first time since May 2022. This means a 150% rise for the cryptocurrency in only one year.
El Salvador's Bitcoin Economic Initiative
Bukele, who is known worldwide for, among other things, having adopted Bitcoin as an official currency in September 2021, has recently stepped down as official president of El Salvador. He will now dedicate the next six months to his electoral campaign for the 2024 elections.
El Salvador's Bitcoin initiative remains one of Bukele's flagship programs, as he aims at encouraging the use of banking services among the population. However, the adoption of Bitcoin has been limited after two years.
El Salvador's #Bitcoin investments are in the black!
— Nayib Bukele (@nayibbukele) December 4, 2023
After literally thousands of articles and hit pieces that ridiculed our supposed losses, all of which were calculated based on #Bitcoin's market price at the time...
With the current #Bitcoin market price, if we were to sell... pic.twitter.com/gvl2GfQMfb
More than 71% of Salvadorans believe Bitcoin has made no positive impact on their family's economy, according to a survey conducted by the Centroamerican University (UCA).
According to the Central Reserve Bank of El Salvador, only 1% of the $4.71 billion in remittances sent from abroad reached the country through the government-created digital wallet 'Chivo Wallet.
Bitcoin's forecast for next months
The rise in Bitcoin's price has triggered an optimistic forecast for some crypto advocates, who argue that the approval of ETFs, which is expected to take place in January, would further expand acceptance of the digital asset from more mainstream investors.
While some experts suggest that Bitcoin could reach $60,000 in 2024, it's worth noting that the cryptocurrency ecosystem is highly volatile, implying a high-risk investment, especially for small holders.
In the U.S., many Latinos are using cryptocurrency to send remittances to countries in Latin America, such as El Salvador. There, these remittances are estimated to represent over 21% of the GDP.
However, the adoption of Bitcoin and other cryptocurrencies is mostly for institutional usage and store-of-value transactions, according to a study by Chainalysis.
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