💵 El Salvador Keeps Buying Bitcoin, Their Strategy Will Shock You

Happy Monday dear subscribers! Today we’ll be talking about El Salvador Bitcoin Strategy!

In today's bulletin, we are covering:

• Surfing the Market, with analysis about SOL and DOT

• Don't miss the News about El Salvador Bitcoin Strategy and Michael Saylor

• Sturdy Finance is under the spotlight.

• A short article about The Impact of News on the Market

Really ugly weekly close yesterday intensified in the last hours of the night. Leaving some coins at the verge of the disaster. SOL for example, with this rejection got pushed back to the $125 level. Which is the main and more important support which had a key role in 2024.

Not doomed for now but playing with fire, tracking carefully:

Same goes for DOT, which continues unable to trigger the bull reversal supressed by a 4 months downtrend resistance.

El Salvador Defies IMF Deal, Continues Bitcoin Accumulation

Despite an IMF agreement to limit Bitcoin purchases, El Salvador has continued acquiring BTC, recently adding 6 more Bitcoin, bringing its total holdings to 6,111 BTC ($504 million). President Nayib Bukele reaffirmed the country's commitment to Bitcoin, rejecting any plans to halt purchases.

• El Salvador secured a $1.4 billion IMF loan in December, agreeing to scale back Bitcoin involvement.

• A new IMF document (March 3) reiterated restrictions on government Bitcoin transactions.

• Bukele insists Bitcoin accumulation will continue, despite global pressure and past criticism.

Michael Saylor Urges U.S. to Acquire 25% of Bitcoin Supply

Michael Saylor proposed that the U.S. government acquire up to 25% of Bitcoin's total supply over the next decade, arguing that a "Strategic Bitcoin Reserve" could generate trillions for the U.S. economy. The plan was presented at the White House Crypto Summit, where Trump signed an executive order establishing a national Bitcoin reserve.

• Saylor suggests the U.S. buy 5-25% of Bitcoin through daily purchases from 2025 to 2035.

• He urges a "Never sell your Bitcoin" policy, predicting it could generate $10 trillion+ annually by 2045.

• Trump’s executive order created a Bitcoin reserve, but without an immediate purchase plan.

• Saylor’s 25% proposal far exceeds Senator Cynthia Lummis’ 5% Bitcoin Act proposal.

• Strategy (formerly MicroStrategy) continues Bitcoin accumulation, recently purchasing $2 billion worth.

Sturdy Finance

The Origins:

Sturdy Finance is a decentralized lending protocol that allows interest-free borrowing by utilizing yield-generating collateral. Rather than relying on traditional interest payments, Sturdy uses collateral that generates yield to reward lenders and facilitate borrowing.

Founded in 2022, Sturdy Finance aims to improve capital efficiency in DeFi lending by enabling sustainable lending.

The project aligns with the DeFi narrative, promoting sustainable yield-based mechanisms without the need for interest payments."

The Operative:

Built on Ethereum, Sturdy Finance enables lending and borrowing by allowing users to deposit yield-generating assets as collateral.

• Key Features:

  • Yield-Bearing Collateral: Borrowers deposit assets like staked ETH or LP tokens, which generate yield that is passed directly to lenders.

  • Interest-Free Borrowing: Borrowers access liquidity without interest payments, as lenders earn from the yield generated by collateral.

  • Risk Management Mechanisms: The platform uses liquidation models and over-collateralization to protect lenders from volatility.

  • DAO Governance: The project is transitioning to a decentralized governance structure, allowing $STRDY holders to influence updates.

Summary & Competitors:

Sturdy Finance launched its native token, $STRDY, in 2022, with a total supply of 100 million tokens Currently, 19.65% of the total supply is in circulation with a market capitalization of around $35.36 million.

The project raised $3.9 million in funding, led by Pantera Capital. Sturdy Finance competes with well-established DeFi lending platforms such as:

• Aave, Compound, and MakerDAO – which rely on traditional interest-based lending models.

• Notional Finance and Silo Finance – which, like Sturdy, explore alternative capital efficiency mechanisms.

The DeFi lending space is increasingly shifting towards more efficient, risk-managed models that balance capital efficiency with long-term sustainability.

The Impact of News on the Market

There are several issues when trying to trade based on news. On one hand, news often arrives late, or rather, the market tends to anticipate it. On the other hand, news does not always have the expected effect. Let's take a deeper look at this topic.

Sell the news

The market always seeks to stay one step ahead of reality because, ultimately, what is bought and sold are expectations. As a result, it takes risks by assuming possible scenarios.

News usually arrives once an event has already taken place. By then, the market has likely positioned itself accordingly and uses the confirmation as an opportunity to exit, applying the well-known stock market adage: "Buy the rumor, sell the news."

Traders who rely solely on news as a trigger for their setup will always be a step (or several) behind the market—and, consequently, behind the price movements.

A special case would be news that could not have been anticipated—so-called black swan events—which catch the market by surprise. In these cases, there is not much that can be done in advance. The best approach is to make decisions quickly, but anticipating a true black swan is impossible.

Good news is bad news

But the most interesting case is when news starts to lose its expected impact on the market—or even has the opposite effect.

When a trend is nearing its end—let’s take an uptrend as an example—positive news confirming the trend becomes an everyday occurrence, seemingly validating the market's direction. However, the problem arises because, since the trend is already in its final phase, each new piece of positive news has a diminishing impact compared to before, almost as if its effect is fading.

This pattern becomes increasingly evident, to the point where every good news release seems to be an opportunity to sell rather than buy. One possible explanation for this is that most market participants are already positioned on the same side, and there are no new buyers willing to pay those prices.

The same phenomenon occurs in a downtrend: negative headlines begin to lose their impact, and investors start seeing this as a potential reversal signal. At this stage, those who wanted to sell have likely already done so, while those still holding are unwilling to sell at such low prices—leading to the formation of a market bottom.

A particular case is when the credibility of the news source—be it a key figure or a government—starts to decline. In these instances, not only do their announcements or decisions have little to no effect, but they often generate negative reactions instead.

A great example of this is Elon Musk and DOGE on X. Without a doubt, the volatility of previous years, when a simple meme or mention of DOGE would send prices soaring, was significantly greater than what we see today. Now, any price spike caused by his tweets is far from extraordinary in the context of crypto markets.

Another case is Trump and his support for crypto. He tweeted about creating a strategic crypto reserve, sending the market soaring—only for the excitement to vanish the very next day, with prices falling below pre-announcement levels. Furthermore, subsequent related news failed to generate much impact, as it became clear that the intention was more about gaining attention than signaling a real paradigm shift.

Conclusion

The market always tends to price in the news and also turn a deaf ear when, in the middle of a trend, the news goes against it or when, toward the end of the trend, the news is in favor of it.

Although the latter may seem paradoxical, this is how the market moves and interprets everything that happens. Everything is interconnected and functions like a vast system of gears that don’t always turn in the same direction.

Therefore, the important thing is not the news itself but how the market interprets it—and based on that, we should make our decisions.

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