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“‘El Salvador’s Bitcoin investments are in the black!’”
That was El Salvador President Nayib Bukele boasting about his country’s investment in cryptocurrency bitcoin
BTCUSD,
in a post on X, formerly Twitter, on Monday. Being in the black is a reference indicating a profit.
Bukele, a bitcoin bull, posted a screenshot of the country’s total bitcoin holdings that now total over $130 million after bitcoin’s overnight rally where the crypto moved past $42,000 for the first time in 20 months. El Salvador’s total bitcoin portfolio is up 2.84%, or $3.6 million, since 2021, although Bukele said he won’t capture that profit by selling the crypto.
“Of course, we have no intention of selling; that has never been our objective. We are fully aware that the price will continue to fluctuate in the future, this doesn’t affect our long-term strategy,” Bukele said.
El Salvador became the first nation in the world to adopt bitcoin as legal currency in 2021. The nation also uses the U.S. dollar as legal tender.
El Salvadorans are allowed to buy land with bitcoin, pay taxes in bitcoin, and bitcoin ATMs have been scattered throughout the country. The El Salvador government has also urged its citizens to download digital crypto wallets, at times offering them $30 worth of bitcoin if they do.
Many in the crypto space have commended El Salvador’s crypto experiment, but the International Monetary Fund has warned of the nation over bitcoin’s instability. The Biden Administration has also issued warnings about crypto on several occasions as it hopes for increased regulation of the industry.
On several occasions, Bukele publicly remained steadfast in his support of bitcoin, saying his country had just “bought the dip.”
See also: Bitcoin and Gold Enjoy Twin Rallies. Why That’s Unlikely to Last.
Despite bitcoin’s 150% rally this year, prices for many of the most-owned digital assets like bitcoin and ether are still down from 2021 highs. Bitcoin is trading just above $45,000 on Monday afternoon, down roughly 30% from its all-time high, and ethereum
ETHUSD,
is trading just above $2,200, down over 50% from its all-time high in 2021.
The comment from the El Salvador president come at a turbulent time for the crypto industry. Last month, Binance founder Changpeng Zhao pleaded guilty as part of a deal to end a U.S. criminal probe into the crypto exchange that also included a $4.3 billion fine on Biance itself.
See also: Gold’s rally has nearly run its course
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