The recent Bitcoin rally, which saw the cryptocurrency gain nearly 8.7% in value, reflects growing investor confidence and the potential for Bitcoin to become a globally recognized currency.

This significant milestone in Bitcoin investment was shared by Richard Teng, CEO of Binance, emphasizing El Salvador's commitment to Bitcoin since it became legal tender.

Supporters of Bukele argue that El Salvador's commitment to Bitcoin sets a precedent for other nations, while critics express concerns over the volatility of the cryptocurrency market.

El Salvador's Bitcoin holdings have surged to a value of $644 million, generating $357 million in unrealized gains due to a recent rally in cryptocurrency prices.

President Nayib Bukele announced this growth, highlighting an initial investment of $287.1 million, which has resulted in over a 124% profit margin on their Bitcoin investments.

El Salvador became the first country to recognize Bitcoin as an official currency in June 2021, and since November 2022, it has committed to purchasing at least one Bitcoin daily.

However, the country faces challenges, including negotiations with the International Monetary Fund (IMF) that require restrictions on Bitcoin activities and a new law making Bitcoin usage voluntary for the private sector.

The IMF has raised concerns over the financial risks associated with Bitcoin's legal tender status and has urged El Salvador to repeal this designation.

Additionally, a class action lawsuit has been filed against cryptocurrency firm Strategy, alleging misleading projections regarding profitability and risks associated with Bitcoin.

In response to IMF conditions, legislation was passed to make Bitcoin acceptance voluntary for businesses, allowing the country to continue its Bitcoin acquisitions.

Despite the financial benefits observed, Bitcoin adoption among the Salvadoran populace remains low, with usage reported to be below 2% in 2025.

As of May 2024, the government reported holding 5,700 bitcoins, and this number has since increased, showcasing El Salvador's ongoing commitment to its Bitcoin strategy.