El Salvador President to Bitcoin Doubters: ‘We Have No Intention of Selling’

Announcing that his country has made $3.6 million by dollar-cost averaging into bitcoin, president Nayib Bukele spoke out to his detractors.

After the bitcoin price hit 20-month highs above the $41,000 mark, El Salvador President Nayib Bukele took to social media to announce the profitability of his country’s bets on the leading digital asset.

“El Salvador’s bitcoin portfolio has now swung into profit … after what was a devastating crypto winter,” TheStreetCrypto’s Joe Parys reported in the video above. “The Salvadoran president said that the country’s cumulative bitcoin investments currently amount to over $131 million and have a net profit of $3.6 million for a total gain of 2.84%.”

Perspective: Bukele’s post not only revealed details about the country’s bitcoin profits to date, but it also reinforced the president’s conviction around the digital asset.

“Of course, we have no intention of selling; that has never been our objective,” Bukele wrote. “We are fully aware that the price will continue to fluctuate in the future, this doesn’t affect our long-term strategy.”

And he pushed back on reporting around the country’s losses as bitcoin experienced a prolonged bear market throughout much of 2022 and 2023.

“The responsible thing to do would be for them to issue retractions, offer apologies, or, at the very least, acknowledge that El Salvador is now yielding a profit, just as they repeatedly reported that we were incurring losses,” he wrote. “If they consider themselves true journalists, they should report this new reality with the same intensity they reported the previous one.”

More details: The chart of El Salvador’s bitcoin purchases shared by Bukele offered insight into the country’s investment strategy.

“Despite the bitcoin fluctuations, the president continued to dollar-cost average into the country’s bitcoin investments, making repeated purchases throughout 2022,” Parys explained. “At one point in time, the country’s bitcoin portfolio fell as low as $45 million from the book value of over $103 million.”

Key takeaways: As bitcoin investors cheer its recent price surge, up more than 20% in the last month, future gains are poised to launch a full-on bull run. But analysts are continuing to watch the price closely, as the increase that pushed El Salvador’s holdings into profit could be a “bull trap.”

“Many guess and wonder: Is this a breakout of $40,000 or simply a bull trap?” Parys noted. “As bitcoin has surged past the key resistance of $40,000 amid a macro liquidity boost, some bitcoin traders predict that the bitcoin price could potentially crash up to 25% or more. So, while bitcoin has surged past $40,000, a serious correction still remains on the watch list.”

The context: Bitcoin’s recent price gains, apparently driven by optimism around potential approval of spot bitcoin exchange-traded funds (ETFs), recently ushered in $1.76 billion to crypto funds. As bitcoin approaches a reward halving in early 2024, any additional price momentum could have exponential impact.

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