El Salvador has launched its own proof-of-reserves website, featuring various tools for monitoring the country’s Bitcoin holdings using on-chain data.
El Salvador’s online Bitcoin treasury provides real-time data on the nation’s Bitcoin (BTC) reserves. The Central American nation officially holds 5,748 BTC, which is currently worth approximately $360 million, with Bitcoin trading above the $62,700 mark as of 8:20 a.m. UTC.
El Salvador has bought seven BTC worth over $438,000 during the past week while adding a total of 31 BTC worth $1.94 million over the past 30 days, according to the website.
The purchases align with El Salvador’s goal of adding 1 Bitcoin to its treasury daily.
El Salvador was the first country to adopt Bitcoin as legal tender in September 2021. The government aims to promote financial inclusion, facilitate more efficient remittance payments and attract financial innovation.
Related: El Salvador’s Bitcoin wallet gets sats, cats and a cypherpunk manifesto
President Nayib Bukele’s decision received widespread criticism after Bitcoin fell from its previous all-time high of $69,000 in November 2021 after the collapse of the FTX exchange. El Salvador's Bitcoin holdings fell deeply in the red after Bitcoin fell as low as $16,000 during the bear market.
El Salvador sitting on $57 million of unrealized BTC profit
El Salvador has been dollar-cost-averaging into Bitcoin since 2021, with an average buying price of $43,097 per BTC. With BTC trading above $62,000, El Salvador has an unrealized profit of over $57.4 million on its Bitcoin holdings, according to the Nayib Bukele Portfolio Tracker website.
El Salvador’s Bitcoin holdings could represent a significant lifeline for the nation, popular venture capitalist Tim Draper told Cointelegraph. According to Draper, the country could soon become financially independent and pay off its loans to the International Monetary Fund if the Bitcoin price reaches $100,000.
Many popular crypto analysts have suggested that BTC will surpass the $100,000 mark during the 2024 to 2025 bull cycle. Following the 2024 halving, Bitcoin could see a cycle top of above $150,000, according to a research report by Bitfinex analysts shared with Cointelegraph:
“Using a straightforward regression model, we predict a 160% post-halving price surge in the next 14 months, taking the price to between $150,000 - $169,000.”
Bitcoin’s price action will mainly depend on the institutional inflows from the United States spot Bitcoin exchange-traded funds, which turned positive after three consecutive weeks of net outflows. The U.S. Bitcoin ETFs amassed a total of $413 million worth of net inflows in the past week, according to Dune Analytics.
Related: Altcoins will bottom in early summer before bull run — Analyst