As Bitcoin's price breaks through a new historical high, El Salvador, which has been controversial for its crypto policy, now welcomes impressive investment results. According to data released by President Nayib Bukele, the country's BTC investment has an unrealized profit of over $357 million, with a return rate of 124%. Despite continuous pressure from the IMF, he firmly stated: "We will not stop buying Bitcoin."
Table of Contents
ToggleHistoric Bet Pays Off: Bitcoin Investment Unrealized Profit Exceeds 124%
El Salvador's President Nayib Bukele recently shared the investment performance of the country's Bitcoin purchases on social platform X. The public sector has accumulated approximately 6,181 Bitcoins since 2021, with an initial investment of around $287 million.
With Bitcoin's price recently breaking through $107,000, the total assets have reached approximately $644 million, with unrealized profits of $357 million, approaching a 124% investment return.
According to the country's Bitcoin Office, El Salvador's Bitcoin investment has increased unrealized gains by nearly $70 million this year alone.
Ignoring IMF Agreement, Bukele Continues Buying Bitcoin Unwaveringly
In June 2021, El Salvador became the first country globally to officially list Bitcoin as legal tender, sparking international discussion and drawing concern and criticism from the International Monetary Fund (IMF).
Facing pressure from the IMF's loan agreement, the El Salvador government passed a bill in January this year, adjusting Bitcoin policy, including allowing private enterprises to choose whether to accept Bitcoin payments and converting some related activities to "voluntary" measures.
(IMF Can't Stop Us! El Salvador Already Holds 6,101 Bitcoins, President Bukele: Keep Buying)
However, Bukele continues to adhere to a "buy the dip" strategy, emphasizing:
When the whole world isolated us, and even many Bitcoin supporters gave up on us, we never stopped. Of course we won't stop now, and we certainly won't stop in the future.
El Salvador's Bitcoin Future: Balancing Policy and Belief
Even though the IMF demands El Salvador restrain or stop its Bitcoin policy in exchange for international financial aid, this national-level crypto bet seems to be gradually generating positive returns.
(El Salvador CUBO AI Project Begins! Ark Founder Cathie Wood Assists in Launching the Course)
Of course, unrealized profits have not yet become realized gains, and market volatility may still bring risks. However, Bukele's tough stance and long-term belief have made El Salvador a global "testing ground" for observing the success or failure of Bitcoin policies.
Moving forward, the market will focus on how the country finds a balance between international financial regulations and crypto beliefs, and whether these book profits will be transformed into substantial national development resources.
Risk Warning
Crypto investments carry high risks, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
BitMEX founder Arthur Hayes shared his sharp market observations at the Token2049 event, believing that the US government's undetonated debt bomb will help boost Bitcoin prices. He predicts that Bitcoin could reach $250,000 by the end of the year and is more optimistic that Ethereum will outperform Solana in the next two years. He also revealed that he still has 20% of his assets allocated to gold, predicting that gold prices will see a double-digit surge.
ToggleUS Debt Crisis Brewing a New Bitcoin Bull Market, Hayes: Buying Debt is Not as Good as Buying Crypto
In a recent interview with Fortune, Hayes pointed out that the US Treasury recently manipulated the "Treasury General Account (TGA)" and used methods to bypass the debt ceiling, reducing the TGA balance from $75 billion to $45 billion in one quarter, essentially secretly adding debt without accounting:
From January to March, the US government's actual spending was 22% higher than the same period last year. This means higher deficits and more liquidity.
(Remittance tax will be levied on funds leaving the US to prevent the dollar from escaping?)
He further analyzed that when the Treasury needs to raise funds at lower interest rates, it will boost market leverage and liquidity, which is bullish for risk assets like Bitcoin:
This is the financial logic behind the "buyback" wave. I believe Bitcoin bottomed on April 9th and will continue to rise.
Bitcoin Target of $250,000, Altcoin Season Approaching?
Regarding Bitcoin's short-term trend, Hayes is optimistic. He predicts that this summer or early third quarter, Bitcoin will break through the $110,000 mark and rise to $150,000-$200,000 as trading volume increases, at which point funds will gradually rotate to other Altcoins. He believes the Altcoin season will unfold after Bitcoin's surge, but not as "all coins flying" as in 2021:
This market won't be a super bull market with 100x jumps, but will be based on new narratives and new demands with individual speculations. Those old coins with high FDV, low circulation, lack of users and revenue will remain stagnant and are beyond salvation.
He emphasized that the core principle of deploying funds is to "outperform Bitcoin", otherwise there is no investment value.
(Bitcoin price will break $1 million in 2028! Arthur Hayes warns: Europeans should escape and transfer their money)
Ethereum Will "Return to Glory": Fundamentals Still the Focus of Capital Rotation
In the competition between Ethereum and Solana, Hayes chooses to stand on the side of "undervalued Ethereum". He frankly admits that Ethereum's market and community sentiment are currently very negative, but it still has the most developers, highest TVL, and is the most secure PoS blockchain: "These fundamentals haven't changed, it's just that everyone hates it."
(Has Solana already overtaken Ethereum? Looking at the true value of public chains from the chain-based new indicator REV)
Although Solana has surged from $9 to $170 since the 2022 bear market, he believes Ethereum will perform better in the bull market of the next 18 to 24 months:
If I were to invest a new sum of funds now, I would choose Ethereum.
Gold Allocation Reaches 20%, Predicting US "Devaluing Dollar to Save Economy" Strategy
Despite being known for cryptocurrencies, Hayes still maintains a significant proportion of gold assets. He revealed that about 20% of his portfolio is in gold, including physical gold and gold mining stocks:
Central banks are massively buying gold, and I believe the US will ultimately raise the Treasury's gold valuation to devalue the dollar, which will push gold prices to $10,000-$20,000.
(UBS: Asian wealthy are shifting assets to gold, crypto, and Chinese markets, reducing dollar positions)
He points out that, like BTC, gold will benefit from monetary easing and debt issues, serving as an important hedging tool against inflation and fiat currency risks.
Optimistic about Trump's crypto policy but not expecting too much: "He's not just here for the crypto"
Hayes, who was previously convicted for anti-money laundering issues and ultimately pardoned by Trump, believes that Trump's policy tone will lean towards being crypto-friendly, but advises against excessive expectations:
Everyone thinks Trump will immediately push for crypto, but he is a politician with many priority issues to handle, and cryptocurrencies are not his top priority.
Regarding overall market predictions, he summarized: "BTC's dominance will continue to rise", "expected to potentially reach a high of $250,000 this year"; at that time, "Altcoins will trigger a small wave", and the market will once again welcome a surprise.
Risk Warning
Cryptocurrency investment carries high risks, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
