Benzinga - by Rounak Jain, Benzinga Staff Writer.
El Salvador President Nayib Bukele has reaffirmed the nation’s commitment to its daily Bitcoin (CRYPTO: BTC) acquisition program.
What Happened: On Friday, Bukele posted on X, “The 1 #Bitcoin a day program just deposited today’s #Bitcoin. This continues until #Bitcoin becomes unaffordable with fiat currencies.”
This continues until #Bitcoin becomes unaffordable with fiat currencies. https://t.co/nzeynjXcFk— Nayib Bukele (@nayibbukele) March 16, 2024
The Central American nation has been steadfast in its Bitcoin investment strategy, despite the recent surge in BTC price.
Earlier this month, El Salvador transferred $400 million in Bitcoin to a safer storage option known as a cold wallet, as part of its efforts to secure its cryptocurrency investments.
Bukele described the move as establishing "our first #Bitcoin piggy bank."
Why It Matters: Despite facing criticism and controversy, Bukele’s decision to double down on Bitcoin appears to be yielding positive results for El Salvador’s economy.
The country’s dollar-denominated sovereign bonds have seen a significant rally, surging more than 200% from 25 cents on the dollar in late July 2023 to 84 cents currently.
This coincides with a substantial rise in Bitcoin’s value, which has nearly tripled from approximately $24,000 to $70,000 in the same period.
El Salvador’s break-even price is reportedly $42,500 per Bitcoin, which is considerably below the cryptocurrency’s current price of $69,598.
Price Action: Bitcoin was trading at $69,075 at the time of writing, down 0.5% in the last 24 hours, according to Benzinga Pro.
Read Next: Why Can’t Dogecoin And Shiba Inu Keep Up With Other Meme Coins?
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo by Gobierno Danilo Medina on Flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.