- El Salvador’s Bitcoin (BTC) holdings have reached over $500 million, fueled by the latest rally pushing BTC past $90,000.
- President Nayib Bukele’s accumulation strategy is proving profitable, with BTC prices up nearly 95% since El Salvador’s significant Bitcoin purchases.
In a striking development for the global cryptocurrency market, Bitcoin surged beyond the $90,000 mark, sparking a response from El Salvador’s President Nayib Bukele, a vocal proponent of BTC accumulation.
On the social media platform X (formerly Twitter), Bukele celebrated this significant milestone with a simple declaration:
“I told you so,”
reflecting his unwavering belief in Bitcoin’s long-term value. This statement highlights Bukele’s steadfast commitment to his country’s BTC-centered economic strategy, which has now culminated in El Salvador’s Bitcoin assets exceeding a value of $500 million.
The recent price jump, which saw Bitcoin surge over 10% on November 11, represents the highest single-day gain recorded for BTC. The rally lifted Bitcoin from approximately $81,000 to a high of $89,900, creating a ripple effect across the cryptocurrency market and further validating El Salvador’s unprecedented move to adopt Bitcoin as legal tender.
This latest increase comes on the heels of an uptrend in Bitcoin prices that analysts attribute to the recent election victory of former U.S. President Donald Trump. Trump’s return to the political scene has sparked increased optimism across financial markets, and Bitcoin appears to be benefiting from this renewed interest, reinforcing its perceived status as a hedge against traditional financial fluctuations.
An added catalyst in Bitcoin’s rise has been the heightened activity surrounding Bitcoin-based exchange-traded funds (ETFs). November 11 also saw record inflows into BTC ETFs, exceeding $1 billion, which signals institutional investors’ increasing confidence in the cryptocurrency sector.
This interest in ETFs reflects a wider acceptance of Bitcoin as an investment asset, potentially signaling more mainstream adoption of cryptocurrencies.
Bukele’s long-standing advocacy for BTC accumulation has shaped El Salvador‘s economic landscape significantly. Since 2021, the government has steadily increased its Bitcoin holdings through routine purchases, famously initiating a daily acquisition of one BTC starting in November 2022.
This strategy, alongside Bitcoin mining initiatives powered by volcanic energy, has proven remarkably profitable. Current returns on these purchases reportedly exceed 95%, underscoring the viability of Bukele’s BTC-centric approach despite initial criticism from various financial authorities and global analysts.
Even during Bitcoin’s market downturn in mid-2022, El Salvador doubled down on its BTC commitment, acquiring additional assets at an average price of $19,000 per BTC.
These strategic acquisitions have since seen unrealized gains as high as 332.8%, a significant figure that strengthens the credibility of Bukele’s decision to make El Salvador the first country globally to recognize Bitcoin as an official currency.
This commitment to digital assets has not only increased El Salvador’s wealth but also heightened the country’s influence on the global stage, particularly within the emerging digital finance sector.
The global Bitcoin community has responded positively to Bukele’s endorsement of BTC, with notable figures like Dennis Porter, CEO and Co-founder of the Satoshi Act Fund, commending El Salvador’s pioneering role in the cryptocurrency space.
Porter emphasized the historical significance of El Salvador’s Bitcoin adoption, indicating that the country is setting a precedent for other nations considering integrating digital assets into their financial systems.
As Bitcoin’s value continues to rise, so too does El Salvador’s prominence in the digital economy. The country’s growing BTC reserves reflect the transformative potential of cryptocurrencies on a national scale, showcasing how strategic asset accumulation can shift both financial trajectories and geopolitical relevance.