Bitcoin’s rally boosts El Salvador bonds
El Salvador’s Bitcoin holdings have peaked at $603.3 million, resulting in $333.6 million in unrealised profits from an initial $269.7 million investment.
El Salvador’s bonds became top performers in emerging markets, fuelled by Bitcoin’s historic rally past $100,000. This marks the first time Bitcoin has directly influenced sovereign bonds, according to President Nayib Bukele. El Salvador’s Bitcoin holdings peaked at $603.3 million, generating $333.6 million in unrealised profits from the nation’s $269.7 million investment.
Bitcoin’s price dipped below $100,000 as some investors took profits, but analysts expect limited supply and growing institutional demand to drive future gains. Over 94% of Bitcoin’s total supply is already mined, with annual supply growth declining steadily, creating a tightening market.
While market optimism grows, sceptics remain unconvinced. Critics like Ariel Investments’ Charles Bobrinskoy describe Bitcoin as a “momentum-driven bubble” despite its ranking as the seventh-largest global asset. Nonetheless, El Salvador’s Bitcoin strategy yields financial and symbolic dividends.
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