“When the price of Bitcoin was low, they constantly wrote thousands of articles about our losses,” President Bukele shared on X. “Now that Bitcoin is soaring, if we sell right now, we will make a profit of over 40%.”
President El Salvador shared on social network X
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Bukele also noted that recently they have acquired more Bitcoin mainly from the citizen program. Accordingly, those who “donate” Bitcoin to the government will be invited to be granted citizenship. However, he did not disclose the exact number. Bukele also revealed that there is no intention to sell Bitcoin.
El Salvador currently holds a total of 2,381 Bitcoin and has an average purchase price of $44,292.
The meteoric rise of Bitcoin
The largest cryptocurrency in the world has been continuously and impressively rising recently. On February 28, Bitcoin reached nearly $64,000 before cooling off.
As of 10am on February 29, Bitcoin was fluctuating around $61,700, gradually heading towards the all-time high of $68,982.20. Over the past week, the price of this digital currency has increased by 20% after a slowdown the previous week. Since the beginning of 2024, Bitcoin has already risen more than 40%.
Antoni Trenchev, co-founder of the cryptocurrency exchange Nexo, predicted some resistance when Bitcoin approaches $69,000. “Breaking the $60,000 mark will further increase the interest of investors, especially retail investors,” he said.
According to JPMorgan, investor interest in cryptocurrency has rebounded in February 2024 after a slowdown in the previous month.
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Halving is an important event in Bitcoin’s system that occurs once every 4 years. After the halving event, the number of newly created Bitcoins through the mining process is halved. |
Investors are waiting for Bitcoin to set a new record this year as the Bitcoin ETF fund comes into being, making it more accessible to institutional investors.
In addition, the upcoming halving event is also highly anticipated. This event is expected to take place in April 2024. Ryan Rasmussen, an analyst at Bitwise Asset Management, believes that thanks to the launch of the Bitcoin ETF fund, the demand for Bitcoin is surpassing the supply.
“We have only seen the tip of the iceberg,” Rasmussen said, referring to the impact of ETF funds. “Institutional capital is flowing into Bitcoin ETF funds and the demand is still increasing.”
Vu Hao (Source: CoinDesk, CNBC)
