Bitcoin soars past $112,000, El Salvador's holdings yield $400 million in profit.
Bitcoin hit a historic high this week, briefly surpassing $112,000, and is currently stabilizing around $111,000. This surge has led El Salvador's President Nayib Bukele to announce on July 10 that the country's bitcoin holdings have generated $400 million in unrealized gains, totaling $690 million.
Source: Nayib Bukele El Salvador's bitcoin holdings have generated $400 million in unrealized gains, with a total value of $690 million.
According to data from Nayib Tracker, El Salvador currently holds 6,234 bitcoins, worth approximately $720 million at the current price. Bukele stated in an official post that since accumulating bitcoins starting in 2021, the country's total investment has reached $291.7 million, with a portfolio growth rate of 139.51% without selling any bitcoin.
Source: Nayib Tracker El Salvador currently holds 6,234 bitcoins, worth approximately $720 million at the current price.
In 2021, El Salvador became the first country in the world to recognize bitcoin as legal tender, alongside the U.S. dollar as an official currency. Although later, during negotiations with the International Monetary Fund (IMF) for development aid, Bukele agreed to scale back related laws, and businesses are no longer mandated to accept digital asset payments, he continues to purchase bitcoin for the national treasury.
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Democratic lawmakers propose a sanctions bill, demanding an investigation into El Salvador's bitcoin policy.
U.S. Democratic Senators Chris Van Hollen, Tim Kaine, and Alex Padilla introduced the El Salvador Accountability Act (S.2058) in June, calling for sanctions against Bukele's government.
The bill accuses the Salvadoran government of violating internationally recognized human rights standards, particularly through the ongoing state of emergency enacted in the country. The bill calls for sanctions against President Bukele, cabinet members, and other individuals representing the government, including party officials and leaders of government agencies.
Sanction measures include freezing assets in the U.S., denying visa issuance, and suspending financial aid. Lawmakers believe that while Salvadoran institutions benefit from U.S. taxpayer funds, they have committed these illegal acts.
The bill also requires the U.S. Secretary of State to submit a comprehensive report on the use of cryptocurrencies in El Salvador within 90 days of the bill's passage. The report must outline how Salvadoran officials utilize bitcoin and other digital assets for corruption, circumventing sanctions, and misusing government resources, including estimating public fund expenditures on bitcoin acquisitions, identifying exchanges used for purchases, listing relevant wallet addresses, and highlighting any participants able to access these funds.
Bukele's bold response: The Democrats are just salty.
Facing threats of sanctions from U.S. lawmakers, Bukele responded on July 9 on X platform with 'HAHAHAHAHAHAHA the Dems are just salty,' showcasing his consistent provocative style.
Source: X Bukele sarcastically responds to U.S. lawmakers' threats of sanctions.
This is not Bukele's first time mocking foreign authorities on social media; in the past, he has made similar statements against the International Monetary Fund and the Venezuelan government. This charismatic leader currently has a close relationship with President Trump, as both share similar stances on combating crime syndicates and supporting cryptocurrencies.
Trump invited Bukele to the White House in April to discuss U.S. immigration support. Two months later, Trump's advisor Bo Hines met with Bukele to explore potential cryptocurrency partnerships. Trump even controversially used El Salvador's large prison to detain individuals deported from the U.S.
Despite facing external criticism regarding Bukele's establishment of an authoritarian government, he maintains high support domestically. According to a poll released by local media (La Prensa Gráfica) polling company LPG Datos, Bukele's approval rating has reached 85.2%.
Source: LPG Datos Bukele's approval rating has reached 85.2%
Cryptocurrency policy has become a focal point of diplomatic struggle, with El Salvador insisting on its bitcoin strategy.
The bill from U.S. Democratic lawmakers calls for an assessment of whether bitcoin or other cryptocurrencies are being used by El Salvador to evade financial sanctions imposed on other countries. The bill points out that such practices could promote corruption and help evade sanctions. The proposed investigation will examine wallet addresses, exchange records, and transaction history. The bill also requires the president to provide a detailed report on sanctioned individuals within 90 days of passage and update the relevant information annually.
However, as the price of bitcoin continues to rise, El Salvador's cryptocurrency strategy appears increasingly successful. The country has realized substantial gains without selling any bitcoins, proving Bukele's government's foresight in cryptocurrency investment.
This diplomatic struggle surrounding bitcoin policy reflects the deep contradictions between traditional financial systems and emerging digital assets. As a pioneer of bitcoin as legal tender, El Salvador's success may influence the cryptocurrency policies of other countries and intensify discussions in the international community regarding the application of digital assets at the national level.
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'Bitcoin skyrockets! El Salvador's return on investment reaches 137%, Bukele mocks U.S. lawmakers: Don't be salty' This article was first published on 'Crypto City.'
