The powerful rise in the price of Bitcoin in recent days caused a strong increase in the value of El Salvador's portfolios. Thus, the dollar value of the BTC in the Central American nation amounts to about $525 million dollars. This is a confirmation of the successful policy of approaching the largest cryptocurrency.
The small Spanish-speaking country's decision to embrace BTC was widely criticized by the IMF and the World Bank. Although these organizations softened their stance, El Salvador's purchasing policy remained firm with the purchase of 1 BTC per day. Thus, the country's authorities' confidence in the digital currency now seems to be paying off.
The president of that country, Nayib Bukele, celebrated the rise of BTC with a short and forceful “ I told you so .” It is important to remember that the internal Salvadoran opposition, mainly the left, is also deeply critical of the bitcoin buying strategy. So far, both the leftists and the IMF and other agencies failed in their apocalyptic warnings.
For example, the country bought some of its cryptocurrencies in 2021, when the price of BTC was considerably high. The following year, the price of the coin plummeted to $16,000, which increased criticism of this strategy. Despite this, the country's president stood firm and called the currency's crash a buying opportunity. Now, with the rise of the nation's Bitcoin wallets, this confidence seems to be paying off.
Bitcoin wallets from El Salvador will continue to gain value
This increase in the value expressed in USD of Bitcoin wallets in El Salvador could be a start. According to enthusiasts of the queen cryptocurrency, its price will continue to rise, especially in 2025. The Trump administration is expected to implement favorable policies for the crypto environment such as regulation that stimulates the development of the sector.
In addition, the big announcement of the incorporation of BTC into the strategic reserves of the North American country is expected. If these campaign promises are fulfilled, the price of Bitcoin, and the rest of the market, is expected to rise significantly. Some institutional experts consider that the price of the currency could exceed $200,000 per token.
If we add to this strong appreciation of the BTC price the recurring purchases of the Salvadoran authorities, it can be said that their funds are just beginning to grow. According to the government, the nation will continue buying indefinitely. The only theoretical danger is that Bukele stops being president and a new administration liquidates the Bitcoin from the national wallets.
However, the chances of this happening are remote, at least in the short term. Currently, President Bukele enjoys great popularity among the voting population thanks to his different proposal with respect to the traditional parties.
On the other hand, the government has also ensured a strong control of public powers that many describe as authoritarianism. In any case, the latter would also help it to stay in power and, with it, the purchase of BTC would continue.
