TLDR
- El Salvador now holds over 6,237 BTC valued at $762M, nearly tripling its estimated $42K per BTC cost basis.
- Bitcoin’s price hit a new all-time high of 123k, boosting El Salvador’s national crypto reserves past $760 million.
- El Salvador began buying Bitcoin in 2021 and continues accumulating despite IMF and U.S. political pressure.
- Over $700M in crypto positions were liquidated as Bitcoin surged, with $435M lost by short sellers alone.
El Salvador’s national Bitcoin reserves have surpassed $760 million after the cryptocurrency crossed $123,000 on Sunday. The milestone marks one of the highest valuations for a sovereign crypto holding since the country began accumulating Bitcoin in 2021.
With over 6,237 BTC now on its books, El Salvador has recorded nearly triple the value on its initial investments. The estimated cost basis for the country’s holdings stands at around $42,000 per Bitcoin.
Bitcoin’s Rise Pushes El Salvador’s Reserves to New Heights
El Salvador’s Bitcoin strategy began in September 2021 when the government officially made the asset legal tender. Since then, the country has continued to buy Bitcoin, including during bear market periods when prices dropped sharply. According to blockchain data from Arkham Intelligence, the nation currently holds 6,237 BTC, valued at over $767 million at the current market rate.
Bitcoin’s latest surge to $123,093, as tracked by Coinmarketcap, increased the value of the country’s holdings considerably. The rise has brought large gains on paper, making El Salvador’s Bitcoin stash one of the largest and most valuable held by a nation-state.
The country’s President, Nayib Bukele, has maintained his Bitcoin-forward policy despite international concern. He has regularly defended the decision on social media and stated that the long-term strategy will benefit future generations.
Global Reactions and Continued Pressure
El Salvador’s move into Bitcoin has received attention from international bodies including the International Monetary Fund (IMF) and the United States. The IMF had previously urged the country to reverse its Bitcoin policy, which led to a change in 2022 that made it optional for local businesses to accept the asset.
More recently, U.S. lawmakers introduced the El Salvador Accountability Act of 2025. The bill seeks to examine how the country is using digital assets and whether sanctions should be considered. President Bukele responded on social media with a dismissive tone, referring to critics as being “just salty.”
Despite the scrutiny, the country’s leadership remains firm. “Sovereigns and central banks must consider Bitcoin as a part of their long-term strategic reserves,” said Pranav Agarwal, independent director at Jetking Infotrain India. He also noted that El Salvador’s example could be studied as part of future global economic models.
Market Trends and Price Movement
The recent rally in Bitcoin has been strong. After months of consolidation under $75,000, the price started to rise in late May. It crossed the $100,000 level in June and continued to climb into July, peaking above $123,000.
According to Pankaj Balani, CEO of Delta Exchange, “The breakout above the $119,500–$120,000 range, supported by rising volume, reflects continued buying interest.” He added that further movement above $122,000 may lead to a rise toward the $124,000–$125,000 range.
The rapid price increase has also led to major market liquidations. Coinglass data showed over $700 million in positions were liquidated in the last 24 hours. Most of these losses came from traders who had bet against Bitcoin’s rise.
El Salvador’s Bitcoin Strategy Remains Unchanged
While other governments continue to monitor digital assets cautiously, El Salvador is actively adding to its Bitcoin reserves. President Bukele has not indicated any plan to sell, even as market conditions improve. This approach differs from traditional reserve strategies that often involve rebalancing or profit-taking.
El Salvador’s holdings now serve as a benchmark for other countries considering similar moves. As Bitcoin continues to set new price levels, observers are watching to see whether other nations will adopt comparable strategies for national reserves.
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