David Edwards
El Salvador’s strategic investment in Bitcoin, with 722 BTC acquired since November 2022, is yielding significant returns. The Salvadoran government has seen a gain of approximately $24.54 million, or 81%, as Bitcoin’s price has surged to over $75,880. This rise highlights both the potential and risk associated with El Salvador’s daily BTC purchasing strategy under President Nayib Bukele.
A Calculated Bitcoin Investment Approach
On November 18, 2022, President Bukele committed to purchasing one Bitcoin every day, starting when BTC was priced at $16,700. Since then, El Salvador has bought BTC consistently, achieving an average purchase price below $42,000. This steady acquisition strategy has helped the government build a position with a cost-effective average, enabling gains from BTC’s recent price increase of 22.06% in the last 30 days alone.
By purchasing Bitcoin during lower market periods, El Salvador has managed to establish a strong financial footing with its BTC holdings, illustrating the potential of strategic, long-term cryptocurrency investment. The nation’s disciplined approach, disregarding short-term volatility, has proven to be profitable.
