El Salvador's Bitcoin Holdings Soar to $632 Million as BTC Hits New All-Time High

Analysts reported that a South American country is among the Bitcoin investors who greatly benefit from the Donald Trump-fueled crypto bull market as its digital asset portfolio reaches new heights.

El Salvador’s Bitcoin (BTC) portfolio has soared to $632 million in value following the latest surge in the crypto’s price.

According to data from CoinGecko, BTC hit a new all-time high of $106,488 on Wednesday.

Taking to his X account, El Salvador President Nayib Bukele shared the massive gains his country earned from the crypto bull market, fueled largely by the US presidential elections.

Highlighting the latest BTC price, Bukele noted that the South American country’s Bitcoin portfolio has increased by 134% to reach $632 million.

Announcing the development in a tweet, Bukele shared an image of the BTC price chart.

The South American president showed in his post that the country earned more than $350 million from its Bitcoin investment, benefiting from the latest rally of the crypto.

Benefitting from the crypto bull market, El Salvador’s Bitcoin holdings have soared to $632 million in value.

As reported, Bukele engineered the country’s investment strategy in Bitcoin, where El Salvador bought 5,966 BTC that were initially valued at $270 million. Now, the nation’s Bitcoin holdings stood at $632 million as BTC’s price went above $106,000.

El Salvador announced the adoption of Bitcoin as a legal tender in the country in 2021, making the South American nation the first country to make that move.

Bukele believes that Bitcoin would allow the country to become less reliant on the US dollar, adding that the crypto could be used to promote financial inclusion and drive economic growth.

However, many of the country’s citizens were skeptical about crypto, raising concerns about the volatility associated with digital assets.

Skepticism on Bitcoin further deepened in 2022 after the BTC price dropped below $17,000, making El Salvadorans more worried about the investment strategy.

But now, it seems Bukele’s crypto gamble has paid off as the value of the country’s crypto portfolio has crossed $600 million.

While El Salvador might have achieved a milestone in its Bitcoin investment, the International Monetary Fund (IMF) is still not convinced by the massive profits from crypto, and is urging Bukele’s administration to reconsider its stance on Bitcoin.

According to analysts, crypto remains a double-edged sword because of its volatility, and they note that while the crypto’s current price is impressive, it could also drop in value.

Despite the concerns, Bukele continues to hold his ground on his BTC investment and has even announced a proposal to transfer some of the country’s BTC assets to a cold wallet that will be stored securely within El Salvador.

Moreover, he is also considering the establishment of Bitcoin City, which he envisions to be a futuristic, tax-free hub that will be powered by the country’s geothermal energy.