Gold Rises in El Salvador & Tether’s Reserves

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee and settle in because the global reserve playbook is shifting again. From San Salvador to Zurich, gold quietly reclaims its shine just as Bitcoin (BTC) faces a critical test on the world stage.

Crypto News of the Day: El Salvador and Tether Bet on Gold to Balance Bitcoin and Market Volatility

El Salvador made its first major gold purchase in 35 years, adding a new layer to its bold financial experiment. The experiment has made headlines worldwide for adopting Bitcoin as a legal tender.

The Central Reserve Bank (BCR) announced Thursday that it acquired 13,999 troy ounces of gold, worth roughly $50 million. This boosts its total holdings to 58,105 ounces, valued at about $207 million.

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The move marks a significant diversification in El Salvador’s reserves. A recent US Crypto News publication indicated how the nation has become synonymous with Bitcoin, with experts advertising El Salvador as Bitcoin’s Statue of Liberty.

El Salvador currently holds 6,290 BTC, worth more than $706 million. However, the latest move signals to global markets that the nation’s interest goes beyond digital assets.

The purchase follows gold’s recent rally to record levels above $3,500 per ounce. With global central banks, particularly in China, India, and Russia, buying gold at the fastest pace in decades, El Salvador is aligning itself with a broader trend of hedging against economic uncertainty.

BeInCrypto recently reported that the number of companies buying Bitcoin for their treasuries has dropped to just 2.8 per day.

This reflects a potential saturation in traditional finance (TradFi) interest.

El Salvador’s Bridge Strategy Balances Gold Stability and Bitcoin Risk

From 2022 to 2024, gold and Bitcoin often moved in tandem, benefiting from investor distrust in traditional currencies.

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However, 2025 has brought a divergence. Gold is up about 16% year-to-date, while Bitcoin has slipped 6%, reflecting their different roles.

On the one hand, gold remains attractive as the “old money” hedge for safety. On the other hand, Bitcoin trades more like a high-beta tech asset.

By holding both, El Salvador is hedging in two directions: stability through gold and upside through Bitcoin.

The government recently strengthened the security of its Bitcoin holdings, distributing them across 14 wallets.

BeInCrypto reported a maximum of 500 BTC each as a precaution against potential quantum-computing threats.

Analysts say the timing of this gold purchase is strategic. It helps reassure international lenders, including the IMF, that El Salvador manages reserves responsibly rather than betting solely on Bitcoin’s volatility.

Some describe the dual approach as a bridge strategy, keeping TradFi stakeholders comfortable while maintaining a high-upside bet on Bitcoin.

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President Nayib Bukele has hinted at expanding gold mining operations domestically, which could further increase the nation’s bullion reserves.

This would deepen El Salvador’s hybrid reserve model of gold and Bitcoin if realized. Meanwhile, El Salvador is not alone in turning to gold.

Tether, the world’s largest stablecoin issuer, has also been building a multi-billion-dollar position in bullion, with $8.7 billion stored in Zurich vaults.

The company has explored investments across the gold mining supply chain, calling the metal “natural Bitcoin.”

While the conservative mining sector has met Tether’s interest with skepticism, it reflects a growing alignment between crypto and gold as complementary assets.

A recent US Crypto News publication indicated Tether’s hedging strategy against fiat currency fluctuations, recording nearly 80 tons of gold (valued at $8.7 billion). Its gold-backed token, XAUT, extends stablecoin utility to precious metals, giving investors access to tokenized gold with the benefits of blockchain.

Chart of the Day

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The chart shows Bitcoin’s value relative to gold since 2010, highlighting major peaks in 2013, 2017, and 2021, with steady upward dominance over gold through 2025.

Each spike (2013, 2017, 2021) reflects Bitcoin bull runs, during which its value surged compared to gold.

Even with corrections, the long-term trend shows Bitcoin gaining purchasing power over gold.

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OneBitcoin buys more gold today than ever before, proving it has outpaced gold as a store of value, though with higher risk.

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

Crypto Equities Pre-Market Overview