El Salvador has been steadily adding to its Bitcoin reserves, with a government-owned cold wallet reportedly purchasing one Bitcoin every day since March 16. This consistent accumulation has resulted in an additional 162 Bitcoins, bringing the country’s total holdings to 5,851 BTC.
According to data from blockchain analytics firm Arkham Intelligence, the Salvadoran government’s cold wallet now holds approximately $356.4 million worth of Bitcoin. The wallet's transaction history reveals a pattern of daily Bitcoin purchases, each adding one BTC, with the most recent transaction occurring just a few hours ago at a cost of $60,500. There were also occasional smaller purchases of less than $100, indicating a strategic approach to accumulating Bitcoin.
Crypto analyst EmberCN estimates that the average purchase price for El Salvador's Bitcoin is around $44,835, giving the country a floating profit of approximately $93.45 million at current prices.
This purchasing strategy is part of President Nayib Bukele's plan to buy one Bitcoin daily until the cryptocurrency becomes “unaffordable.” When the buying began, El Salvador transferred 5,689 BTC into the cold storage wallet, then valued at $386 million. Bukele referred to this wallet as the country’s first “Bitcoin piggy bank.” In an effort to increase transparency regarding its Bitcoin holdings, El Salvador has also created a mempool space, allowing the public to audit its cryptocurrency reserves.
In addition to expanding its Bitcoin holdings, El Salvador recently proposed using cryptocurrency for trade with Russia. This suggestion comes as a response to the sanctions imposed on Russia by the United States and its allies due to the ongoing conflict in Ukraine. With El Salvador recognizing the U.S. dollar as a national currency, the country faces challenges in trading with Russia, whose access to the USD has been severely restricted by sanctions. Utilizing Bitcoin could offer a way to bypass these limitations.
Meanwhile, Bitcoin's price has seen a modest increase, up 0.8% in the last 24 hours and 5.1% over the past week. The cryptocurrency’s market capitalization now exceeds $1.2 trillion, representing more than 53% of the entire crypto market’s value.
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