El Salvador bonds emerged as the biggest gainers in emerging market debt as Bitcoin surpassed $100,000.
Bitcoin (BTC) price action triggered a rally in El Salvador bonds on Dec. 5, according to Bloomberg’s indicative pricing data for government bonds maturing in 2035 and 2041. El Salvador pro-BTC President Nayib Bukele wrote in response to the news via X:
El Salvador’s $269.7 million Bitcoin hoarding strategy generated $333.6 million in unrealized profits, leaving the value of the country’s assets at $603.3 million when Bitcoin peaked.
Bitcoin has fallen below $100,000 at press time as long-term holders took profits amid expected market corrections. On-chain data showed investors booked quadruple profits.
24-hour BTC price chart – December 5 | Source: crypto.news Bitcoin is approaching Google
Despite the decline, most of Bitcoin’s circulating supply remains outside exchanges and increased institutional demand is tightening available liquidity. Thomas Perfumo, Kraken’s head of strategy, noted that supply dynamics will likely sustain upward price momentum.
More than 94% of all Bitcoins that will ever exist have already been mined. Outstanding supply is growing at around 0.8% year-on-year and only trending downwards from there. The supply of BTC is known today, tomorrow and in the future. When demand is this high, there is only one logical outcome: price action turns positive.
Thomas Perfumo, head of strategy at Kraken
Despite market euphoria and billions of dollars in capital flows, skeptics such as Peter Schiff and Charles Bobrinskoy of Ariel Investments remained skeptical about BTC.
Bobrinskoy claimed that BTC was a “momentum-driven bubble” and a “get-rich-quick scheme” heading towards its eventual decline. When Bobrinskoy made these statements, BTC was the seventh largest global asset, behind only Google, Amazon, Microsoft, Nvidia, Apple and Gold.