El Salvador has just achieved a milestone of 6,000 Bitcoin in national reserves, becoming the sixth country in the world in terms of Bitcoin holdings, with an estimated value of around $570 million. This achievement marks a significant step in the country's Bitcoin adoption strategy while encouraging other countries to consider a similar strategy.



El Salvador's Bitcoin Strategy



El Salvador began buying Bitcoin 39 months ago and maintained a "dollar-cost averaging" strategy with a frequency of 1 $BTC per day. However, by the end of this year, the country is making larger transactions, such as purchasing 11 Bitcoin on December 20 and 22.



President Nayib Bukele stated:



Our Bitcoin reserves have currently increased in value by 127% compared to the amount spent – which means over $344 million in profits.



Additionally, #ElSalvador has just reached an agreement to borrow $1.4 billion from the International Monetary Fund (IMF). In return, the country adjusted its policy from requiring all businesses to accept Bitcoin mandatorily to a voluntary basis, in order to mitigate the financial risks associated with cryptocurrency adoption.



Global Trends



El Salvador is not the only country looking to Bitcoin as a strategic reserve asset. According to Galaxy Research, at least 5 countries will add Bitcoin to their national reserves by 2025. The reasons include:


• Asset diversification.


• International trade payments.


• Strategic competition.



In the U.S., President-elect Donald Trump suggested creating a national Bitcoin reserve fund. Some states, such as Florida and Pennsylvania, are also exploring the establishment of their own Bitcoin reserves.



The Crypto Market is Booming



Along with this event, the cryptocurrency market has recorded positive fluctuations:


• Bitcoin increased by 0.7% in the last 24 hours, reaching $94,970.


• Ethereum rose 1.5%, now at $3,390.



The Future of Bitcoin on a National Scale



El Salvador's success is a clear testament to Bitcoin's potential in boosting the national economy. With Bitcoin's price rising from $45,000 to over $100,000 in the past year, other countries may join the race to build Bitcoin reserves to seize this development opportunity.



El Salvador's milestone not only solidifies its pioneering position in adopting Bitcoin but also sparks a wave of broader global adoption.