President Nayib Bukele's ambitious Bitcoin strategy for El Salvador is now yielding substantial returns, with the nation's crypto holdings rocketing beyond $760 million as Bitcoin remarkably crossed the $122,000 threshold on Sunday. This significant milestone appears to vindicate a national economic approach that was previously dismissed as reckless by numerous global financial institutions.
According to data from Arkham Intelligence, the Central American nation currently holds more than 6,237 BTC, collectively valued at over $762 million. With Bitcoin trading at approximately $122,121—a 3.7% increase in 24 hours, according to CoinGecko data—El Salvador's estimated average cost basis of $42,000 per Bitcoin means its holdings have nearly tripled in value, generating paper profits that considerably outshine many traditional government investments.
President Bukele's administration made history in 2021 by declaring Bitcoin legal tender and commenced accumulating the digital asset during periods of market lows. This pioneering move was met with fierce criticism, diplomatic tensions, and a major market selloff, all of which El Salvador endured before the cryptocurrency market swung dramatically in its favor.
"Sovereigns and central banks must consider Bitcoin as a part of their long-term strategic reserves," remarked Pranav Agarwal, independent director at Jetking Infotrain India, which stands as the country’s first listed Bitcoin treasury company, in an interview. He further added, "The mark-to-market gains by El Salvador are a great indicator of how this approach accrues value over a rolling four-to-five-year period. It will go down as a case study in global economics."
Addressing potential risks, Agarwal affirmed, "As an independent nation, if the government has the support of the elected representatives, they don’t face material internal regulatory risks."
Despite these successes, El Salvador's Bitcoin strategy continues to face international scrutiny. President Bukele publicly mocked U.S. senators on X last week following the introduction of the "El Salvador Accountability Act of 2025." This proposed bill aims to investigate the country’s Bitcoin usage and explore the possibility of imposing sanctions.
While the International Monetary Fund (IMF) has previously exerted pressure on El Salvador to roll back certain aspects of its crypto law—leading to an amendment that made Bitcoin acceptance optional for businesses—President Bukele remains undeterred, consistently adding Bitcoin to the national balance sheet.
As Bitcoin continues its ascent to new highs, traders are keenly observing key price levels for indicators of sustained momentum. Pankaj Balani, CEO and co-founder of Delta Exchange, informed Decrypt that "The breakout above the $119,500–$120,000 range, supported by rising volume, reflects continued buying interest." He added, "A sustained move above $122,000 could open the path toward $124,000–$125,000."
July 2025, Cryptoniteuae