- 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.
Amid the renewed optimism, El Salvador’s president, Nayib Bukele , took the opportunity to laud his country’s Bitcoin bet. In response to past backlashes against El Salvador’s progressive BTC stance, Bukele revealed a 40% unrealized profit, adding that the critics “are totally silent now.”
Bitcoin Vindication
In a recent tweet, Bukele stated that he was subjected to a litany of hit pieces attacking El Salvador’s 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 Salvador’s citizenship program is now its main source of Bitcoin rather than direct purchases using treasury funds. El Salvador launched its “Freedom Visa” program in December 2023, offering applicants citizenship for $1 million, payable in BTC or USDT.
Remaining defiant, Bukele stated that “we won’t sell [our Bitcoin,]” a position he shares with MicroStrategy chair Michael Saylor, who often reiterates the company’s intention to hold forever . Despite Bitcoin’s notorious price swings, Bukele confirmed his position by stating that “1 BTC = 1 BTC.”
Although Bukele remains steadfast that Bitcoin retains inherent value regardless of fiat price shifts, the recent upturn has massively swollen El Salvador’s coffers in dollar terms.
El Salvador’s Treasury Boosted
The market upswing has significantly boosted the value of El Salvador’s 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 Bukele’s 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 “1 BTC = 1 BTC” statement, it is clear that he is not thinking about Bitcoin in fiat terms.
Read about Bitcoin’s surge past $60,000 this week:
Bitcoin Hits $60K as It Closes in on ATH Ahead of Halving
Find out more on VeChain’s stab at incentivizing sustainability here:
How VeChain’s New Token Rewards Sustainability
