El Salvador's Bitcoin Reserves and the Impact on its Economy

El Salvador's President Nayib Bukele revealed that the country moved over 5,000 BTC, worth $400 million, into a cold wallet, nearly doubling its known stash of the digital asset. This move places El Salvador's bitcoin treasury far higher than previously believed, with Bukele mentioning that the country acquired the cryptocurrency through various means including selling passports, currency conversions, mining, and government services. El Salvador became the first country to purchase bitcoin as a treasury asset in September 2021, and the recent on-chain transfers into its cold wallet occurred over the past week, with most of the bitcoin coming from Bitfinex.