The pro-bitcoin country has over $15 million in unrealized loss despite bitcoin’s rally to a yearly high of $36000 on November 2nd.
On September 7 2021, El Salvador became the first country to make bitcoin legal tender. It passed a law that required all businesses to accept the cryptocurrency. In an attempt to popularise and regularise its use, the government created a special app for free bitcoin transactions and gave citizens financial incentives to download the app.
The Government of EL-Salvador further proceeded to buy and hold bitcoin. They currently hold a total of 3080 bitcoins worth over 109 million at current price.
The Bitcoin-pro country started buying at the average price of $40,594.93, totaling about $125 million. Thus bitcoin trading at $35,400 at the time of writing, brings their portfolio to an approximate net worth of $109 million. An approximate of $16milion in unrealised losses.
Can Bitcoin Price Come to the Rescue
Bitcoin propelled by certain factors like the imminent approval of the bitcoin ETF application by giant asset management firms, and the halving in 2024, has continued to rally upwards.
From an average closing price of $27,928 on october 1, bitcoin now trades at $35,400 at the time of writing. The Bitcoin price chart however signals a potential move to the $48k region.
A potential move that will send El-savador’s bitcoin portfolio to $147,840 million. An average of $22 million in profit.
The bitcoin price has however formed a Doji on the daily chart signalling a reversal. This may be a signal for an incoming retest that will send bitcoin to the 32k region before the actual leg up to $48k.
