El Salvador’s transformation from a nation that was skeptical of cryptocurrency to one that is the staunchest advocate for Bitcoin has been nothing short of extraordinary.

Paper profits exceed $167 million, and the Central American nation currently maintains 6,068 BTC in its treasury, which is almost $600 million in value.

This remarkable turnaround has captivated the attention of both supporters and critics, particularly in light of the International Monetary Fund’s initial opposition to the nation’s courageous cryptocurrency experiment.

The IMF Stance On Crypto

The IMF has recently issued a warning to El Salvador regarding the potential economic consequences of adopting crypto as legal tender.

Recent reports and papers suggest that while financial stability risks from crypto-assets, including Bitcoin, are considered limited at present, there is an ongoing effort to develop comprehensive policies and regulatory frameworks to address potential future risks.

El Salvador has stacked 21 BTC this week!

Total SBR Holdings: 6,068.18 BTC
Total Added Today: +1 BTC
Total Added Past 7 Days: +21 BTC
Total Added Past 30 Days: +60 BTC

The first Strategic Bitcoin Reserve in the world keeps growing and so El… pic.twitter.com/iz2x9CGbuu

— The Bitcoin Office (@bitcoinofficesv) February 4, 2025

This latest perspective occurs as El Salvador continues to exhibit remarkable resilience in its cryptocurrency strategy, despite the fact that it was required to make some concessions in order to secure a $1.4 billion IMF loan.

The director of the ONBTC, Stacy Herbert, stated in December 2024 that they will continue stacking in spite of the IMF’s reservations and policy changes, perhaps at “a faster pace” and at a “discount.”

Bitcoin: A Strategic Turning Point

Some observers may have perceived the recent policy adjustments mandated by the IMF as a setback. It was necessary for El Salvador to reduce certain aspects of its Bitcoin laws, such as the requirement for businesses to accept cryptocurrency payments and the discontinuation of crypto tax settlements.

It was also necessary for the government to withdraw from its involvement in the state-operated Chivo wallet. Nevertheless, El Salvador’s dedication to Bitcoin remains unwavering, despite these amendments.

Big Players Join The Fray

The increasing interest from major economic powers in establishing their own crypto reserves is perhaps the most intriguing development. According to reports, the United States, Brazil, and Germany are currently investigating the establishment of a Strategic Bitcoin Reserve, a development that would have been unimaginable only a few years ago.

This change in perspective from major economies could potentially make it more difficult for international financial institutions to discourage smaller nations from following suit and validate El Salvador’s early adoption.

Future Prospects And Global Implications

El Salvador continues to accumulate Bitcoin at a remarkable rate, despite the fact that it has scaled back some of its more ambitious Bitcoin initiatives in order to secure IMF funding. The National Bitcoin Office recently disclosed that the nation acquired 60 BTC last month, with 20 of those acquisitions occurring within a single week.

This aggressive purchasing strategy, in conjunction with reports that the country is acquiring discounted BTC price through US government auctions of seized cryptocurrency, indicates that El Salvador’s Bitcoin aspirations are far from over.

The compelling aspect of this narrative is its challenge to the prevailing belief that minor nations have the capacity to impact global financial trends. Despite initial skepticism and pressure from international institutions, El Salvador’s steadfastness in its crypto strategy may prove to be a turning point in the history of digital currency adoption.

Featured image from Pexels, chart from TradingView

Coinbase director Conor Grogan has raised speculation that crypto exchange Kraken and its CEO might have insight into the true identity of Bitcoin’s (BTC) elusive creator, Satoshi Nakamoto. 

His comments come after Arkham Intelligence added tracking for Satoshi Nakamoto’s Bitcoin holdings to their platform.

Kraken and Satoshi Nakamoto: A Hidden Connection?

According to the blockchain analytics firm, Satoshi’s known Bitcoin holdings total 1,096,354 tokens, valued at $107 billion at current prices. 

Furthermore, Satoshi has distributed his BTC trove across more than 22,000 wallet addresses. It includes the only known addresses from which Satoshi spent BTC. Notably, Arkham identified these addresses from the Patoshi Pattern.

For context, the Patoshi Pattern refers to a distinct mining pattern identified in the early Bitcoin blockchain and many believe it is linked to Bitcoin’s creator.

Coinbase’s director examined Satoshi Nakamoto’s wallet activity and shared his findings in a thread on X (formerly Twitter). While he noted that these wallets cannot be definitively linked to Satoshi, the evidence strongly suggests they belong to Bitcoin’s creator.

“In total, this research points to Satoshi owning 1.096 million BTC, worth approximately $108 billion, making them wealthier on paper than Bill Gates,” Grogan wrote.

He suggested that Nakamoto last moved Bitcoin on-chain in 2014. Interestingly, Grogan’s analysis uncovered evidence pointing to Kraken having knowledge of Satoshi Nakamoto.

Grogan found 24 outbound transactions from Satoshi-linked addresses. The most notable destination was the wallet 1PYYj, which reportedly received BTC from Cavirtex, a now-defunct Canadian cryptocurrency exchange. 

“I believe this is the first documented onchain between a Satoshi linked wallet and a CEX,” he remarked.

This means that Satoshi may have interacted with a centralized exchange, potentially leaving a digital footprint. Historically, Nakamoto has remained highly cautious about privacy, making any link to a regulated entity notable.

In 2016, Kraken acquired Cavirtex. Therefore, Grogan speculated that Kraken’s CEO Jesse Powell might know Satoshi’s true identity. Nonetheless, this depended on whether they retained any Know Your Customer (KYC) records on this wallet.

“My advice to him would be to delete the data,” Grogan suggested.

That’s not all. The 1PYYj address appears to be linked to the funding of 12ib. This Bitcoin address is among the largest active ones, currently containing more than $3 billion in BTC.

This strengthens the theory that 1PYYj was either controlled by Satoshi or an early Bitcoin adopter and contributor.

Furthermore, Grogan pointed out the possibility that the 500 BTC sent to 1PYYj in 2010 may have been a payment to another party, potentially revealing a new documented Satoshi-era Bitcoin transaction. 

In response to Grogan’s claims, Kraken posted a cryptic tweet.

“We are all Satoshi,” the post read.

While this does not confirm Kraken’s knowledge of Nakamoto’s identity, it raises questions about whether the exchange possesses information that could unravel Bitcoin’s greatest mystery.

Previously, Craig Wright claimed to be Bitcoin’s creator. However, the court legally dismissed his claim. Meanwhile, HBO’s documentary explored the possibility that core Bitcoin developer Peter Todd is Nakamoto—a claim he firmly denies.

In October 2024, a London press conference featured Stephen Mollah, asserting he is Bitcoin’s creator.

Bitcoin (BTC) could hit $500,000 by 2028, according to Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered.

Kendrick also sees Bitcoin reaching $200,000 by the end of 2025, a significant jump from its current trading levels.

Standard Chartered Maps Bitcoin’s Path to $500,000

In a February 5 investor note titled “Bitcoin—Pathway to the USD 500,000 Level,” Kendrick outlined the two primary factors influencing Bitcoin’s price trajectory. His bullish outlook builds on increasing institutional access and declining market volatility.

The approval of US spot Bitcoin exchange-traded funds (ETFs) has significantly enhanced investor access, a trend Kendrick expects to accelerate under Donald Trump’s administration. 

“The ETFs have attracted a net $39 billion of inflows so far, supporting the theory of pent-up demand being unleashed by increased access,” Kendrick stated in the note.

Furthermore, as the ETF market matures, Kendrick expects Bitcoin’s volatility to decline. A more stable BTC market could encourage further adoption among institutional investors. This, in turn, would increase its weight in a gold-Bitcoin portfolio.

“Investor access and lower volatility should lead to price appreciation longer-term as portfolios continue to move towards their optimal/logical state,” he added.

According to Kendrick, this shift will contribute to Bitcoin’s long-term price appreciation.

“Access plus lower vol could see Bitcoin reach the USD 500,000 level before Trump leaves office,” he explained.

In addition to the two core factors, Kendrick highlighted the repeal of SAB 121 and Trump’s executive order on a digital asset stockpile as key developments that could encourage central bank adoption.

Based on these factors, he predicts the price will reach $200,000 by 2025 and $300,000 by 2026. By 2027, it could hit $400,000, followed by $500,000 in 2028. He expects it to remain stable at that level through 2029.

Bloomberg’s senior ETF analyst Eric Balchunas reacted to the report in an X (formerly Twitter) post.

“Standard Chartered is mainlining the hopium again, says Bitcoin will hit $500K by end of Trump term. Tbf tho, their crazy Bitcoin ETF flow prediction was actually closer than we were, so who knows!” Balchunas stated.

Crypto investor Thomas Kralow echoed a similar sentiment, acknowledging that while bold, the forecast isn’t entirely unrealistic. 

“Time will tell whether those predictions are close to reality or not, but it’s not something completely unreal,” he remarked.

The latest prediction comes after Standard Chartered had projected Bitcoin to reach $125,000 by 2024. This prediction was contingent on Republican victory in the US elections. 

Following Trump’s election win, Bitcoin surged past $100,000 in early December. Although it has yet to cross $125,000. The latest all-time high was $108,786 on January 20, just hours before Trump’s inauguration.

Since then, Bitcoin has experienced sharp corrections, dipping frequently below the six-digit mark. At press time, BTC traded at $98,093, up by 0.57% over the past day.

Standard Chartered isn’t alone in its optimistic Bitcoin outlook. CryptoRank also predicts that Bitcoin will hit new all-time highs in 2025. The platform expects central banks to adopt Bitcoin as a reserve currency, further solidifying its long-term value.

“Bitcoin DeFi will emerge as one of the leading narratives. An increasing number of S&P 500 companies will hold Bitcoin,” the report read.

However, the report emphasized that continued Bitcoin growth depends on US regulatory policies. If the government adopts a pro-Bitcoin stance, the price could rise further. Conversely, regulatory pushback might trigger a market correction.