El Salvador's Bitcoin Gamble Is Paying Off As Cryptocurrency Predicted To Hit USD100,000
The cryptocurrency's value has reached a record high of USD72,000.
By Sukhbir Cheema — 12 Mar 2024, 03:55 PM
Bitcoin, considered by many the world's leading cryptocurrency, has soared to an unprecedented high above USD72,000 (RM337,000)
According to analysts, the increasing price of Bitcoin reflects growing global interest, driven by increased accessibility and the weakening US dollar.
As Bitcoin nears its "halving" event in April, analysts expect its price to rise to as much as USD100,000 (RM468,385)
While calling for caution, City Index analyst Fiona Cincotta said USD100,000 (RM468,385) could be Bitcoin's "next natural target".
This surge, which eclipses the previous November 2021 high of USD68,991 (RM323,143), comes as the UK's Financial Conduct Authority announced its backing for crypto-related securities, echoing the approval of bitcoin ETFs by US regulators.
Analysts interpret this as a sign of cryptocurrency's acceptance into the mainstream, particularly among institutional investors.
Meanwhile, El Salvador's President, Nayib Bukele, has reaffirmed the country's commitment to holding its Bitcoin reserves, despite making a significant 50% profit
The South American nation adopted Bitcoin as a legal tender and invested state funds in it.
Despite experiencing losses during the crypto market downturn in 2022, El Salvador didn't cut its losses. That resilience has now paid off as the country's initial investment of USD105 million (RM492 million) now exceeds USD155 million (RM726 million).
The country is believed to hold approximately 2,380 Bitcoins which it had purchased at an average price of USD44,300 (RM207,500).
No, El Salvador has no plans to sell its Bitcoin holdings and prefers to hold
Bukele, in a post via X (formerly Twitter) said that when Bitcoin's price was low, many criticised him for the country's losses.
“When Bitcoin’s market price was low, they wrote literally thousands of articles about our supposed losses. Now that #Bitcoin’s market price is way up, if we were to sell, we would make a profit of over 40% (just from the market purchases), and our main source of BTC is now our citizenship program."
"We won’t sell, of course; at the end 1 BTC = 1 BTC (this was true when the market price was low and it’s true now); but it’s very telling that the authors of those hit pieces, the “analysts”, the “experts”, the “journalists”, are totally silent now.
"Remember this, next time they spill lies again about El Salvador," Bukele tweeted.
