El Salvador’s Bitcoin (BTC) holdings have taken a hit amid renewed cryptocurrency market volatility, with the asset losing its $110,000 support zone.
Specifically, the country’s cryptocurrency portfolio shed more than $22.8 million in value over the past seven days, according to data retrieved from DropsTab on September 1.
The weekly decline reflects a 3.25% drop in Bitcoin prices, which fell to around $108,764 per coin.
Despite the setback, El Salvador’s overall Bitcoin investment remains in massive profit. The nation currently holds 6,262 BTC, valued at roughly $680.77 million. The figure represents a 126.51% gain on its total investment of $300.55 million, resulting in an unrealized profit of approximately $380.2 million.
El Salvador’s Bitcoin strategy
Indeed, the portfolio has seen significant swings since El Salvador became the first country to adopt Bitcoin as legal tender in September 2021.
After reaching a recent high near $774.9 million, the holdings have since pulled back by almost $100 million.
Notably, President Nayib Bukele’s government has pursued a strict accumulation strategy, consistently buying Bitcoin but never selling, even during prolonged downturns.
The approach is part of a broader vision to integrate cryptocurrency into the economy, attract foreign investment, and expand financial inclusion for citizens lacking access to traditional banking.
However, critics argue the strategy exposes national finances to severe market risks, given Bitcoin’s history of sharp corrections. Supporters, however, highlight the current $380 million in paper profits as proof that patience has so far paid off.
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