El Salvador Surpasses North Korea in Bitcoin Holdings as Lazarus Group Reserves Decline
El Salvador has strengthened its position as the leading sovereign holder of Bitcoin (BTC), having recently overtaken North Korea. El Salvador’s current holdings are estimated at approximately 5,750 BTC, accumulated through consistent government purchases since Bitcoin’s adoption as national legal tender in 2021. This ongoing accumulation is underscored by continued state-level investment and public backing from President Nayib Bukele. In contrast, North Korea’s Lazarus Group, once known for amassing large Bitcoin reserves via cybercrime, now reportedly controls about 3,500 BTC due to global law enforcement crackdowns and asset freezes. The increase in El Salvador’s reserves signals growing institutional adoption of Bitcoin among nation-states, boosting both BTC legitimacy and scarcity. Meanwhile, the reduction in North Korean-linked Bitcoins may ease trader concerns about illicit BTC entering the market. Crypto traders should monitor such government-led accumulation trends and regulatory actions, as they can drive sentiment, liquidity, and price movements in the Bitcoin market.
Bullish
El Salvador’s steady accumulation of Bitcoin for its national treasury and surpassing North Korea as the largest sovereign BTC holder sends a strong, positive signal regarding institutional and governmental adoption of Bitcoin. Increased nation-state involvement tends to enhance BTC legitimacy and reduce available supply, supporting bullish price sentiment. At the same time, the reduction in North Korean-held BTC—much of it previously linked to illicit activity—may allay trader concerns about tainted coins impacting liquidity and reputation. Overall, these developments strengthen market confidence in Bitcoin’s long-term value and stability, contributing to a bullish outlook both in the short and long term.