El Salvador Celebrates as Bitcoin Conquers New Heights, President Bukele Gives an Update

Early this month, Bitcoin soared past the historic $100,000 mark, bringing a windfall to the country's holdings and silencing some of its fiercest critics.

El Salvador is celebrating a major milestone in its adoption of Bitcoin as legal tender, with the country's holdings now valued at over $600 million.

Bitcoin Surges Past $100K

Earlier this month, Bitcoin soared past the historic $100,000 mark, bringing a windfall to El Salvador’s holdings and silencing some of its fiercest critics.

President Nayib Bukele, the face behind this strategy, marked the milestone by sharing El Salvador’s reported gains of over $350 million, highlighting the risky yet potentially rewarding nature of his Bitcoin experiment.

Bitcoin’s latest rally began after Donald Trump’s U.S. election victory in recent weeks, further boosted by the nomination of crypto-friendly Paul Atkins for the SEC chair position.

On Monday, the cryptocurrency soared even further to a new high of more than $106,000. The gains dramatically improved the value of El Salvador’s Bitcoin portfolio, which the government began accumulating in 2021.

El Salvador’s Bitcoin Holdings Surpass $600 Million

In 2021, El Salvador made headlines by becoming the first country to make Bitcoin legal tender, sparking intense debate. Bukele argued that Bitcoin could boost financial inclusion, drive economic growth, and lessen reliance on the U.S. dollar.

But the decision was divisive. Protesters filled the streets, voicing concerns over Bitcoin’s notorious volatility and its practicality as a medium of exchange. At one point in 2022, Bitcoin’s price plummeted to under $17,000, deepening skepticism both domestically and internationally, APNews reported.

Fast forward to 2024, and the narrative has shifted dramatically. El Salvador’s Bitcoin holdings, once criticized as reckless, have grown to more than $600 million in value.

Price Volatility

However, Bitcoin’s volatility remains a double-edged sword. While El Salvador's recent gains are impressive, the digital asset faces volatility, and the investment could drop in value.

Interestingly, Bukele has also proposed the creation of Bitcoin City, a futuristic, tax-free hub powered by geothermal energy from the country’s volcanoes.

For now, Bukele continues to double down on his Bitcoin dream. Earlier this year, he announced plans to move a significant portion of El Salvador’s Bitcoin assets to a cold wallet stored securely within the country’s borders.