El Salvador’s Bitcoin (BTC) investment is facing nearly $20 million in unrealized losses despite the top asset’s recent rally to $35,000, data from Nayibtrackerunveils a platform that monitors the Central American country’s BTC holdings.
According to the site, El Salvador acquired 3,062 Bitcoin at an average cost of approximately $40,594.93, totaling approximately $124 million. On the other hand, BTC is trading around $34,442, which represents a significant 15.216% decline in the country’s investments at the time of writing.
On October 23, Bitcoin briefly hit a yearly high of $35,000 following increased optimism that the U.S. Securities and Exchange Commission (SEC) would approve a spot BTC exchange-traded fund (ETF) application.
Nevertheless, it is worth noting that the top assets are still trading around 50% below the November 2021 record high. Notably, El Salvador’s President Nayib Bukele led the country to make BTC legal tender and initiated government purchases of cryptocurrency around this period.
BTC in El Salvador
Bitcoin adoption in El Salvador continues to face challenges despite the country adopting the flagship currency as legal tender.
In August one report from crypto research firm Ark Invest revealed that Salvadorans prefer to transact in the US dollar rather than the top cryptocurrency.
“El Salvador’s citizens prefer to transact in USD, which became legal tender in El Salvador in 2001 and has protected purchasing power from the inflation and devaluations that have plagued other countries in the region,” wrote Ark Invest’s David Puell.
“In contrast, bitcoin’s price has been quite volatile despite growing pains as it attempts to evolve towards a monetary system with increased liquidity and global adoption.”
Despite these concerns, Vice President Felix Ulloa said The adoption of BTC in the country has contributed to its revitalization. According to Ulloa, this move has helped the country attract many investors to its shores and reposition the country among the community of countries.
El Salvador is attracting interest from the crypto community, with Bitfinex recently debuting a documentary about BTC adoption in the country. Additionally, crypto payments company Strike has unveiled plans to move its headquarters from Chicago, US, to El Salvador.