El Salvador Doubles Down on Bitcoin as Ethereum Ratio Crashes to 5-Year Low

In an era defined by inflationary tremors, institutional hesitancy, and shifting global trust in traditional financial systems, El Salvador is boldly rewriting its economic playbook. The nation — the first in the world to embrace Bitcoin as legal tender back in 2021 — has continued to accumulate Bitcoin for its national treasury. 

Despite the surrounding volatility and widespread skepticism, El Salvador's leadership is not backing down. In fact, it's doing the opposite: doubling down, day after day, on its crypto bet.

At the same time, the ETH/BTC trading pair has plummeted to its lowest level in five years, signaling a major shift in the market’s internal hierarchy. 

Ethereum’s weakening stance relative to Bitcoin may be a symptom of deeper structural concerns, ranging from network centralization debates to regulatory uncertainty. 

This moment, then, is not just about a market dip — it's about a possible turning point in the crypto macro narrative.

El Salvador’s Strategic Bitcoin Accumulation

Since its landmark Bitcoin Law passed in September 2021, El Salvador has continuously added BTC to its reserves — a move that critics have called reckless, while proponents praise as visionary. 

Yet what was once seen as a risky political stunt has matured into a systematic, daily buying strategy that leverages Bitcoin's volatility to El Salvador’s advantage.

Read Also: South Korean Banks Weigh Bitcoin Reserves Amid Global Crypto Shifts

A Daily DCA Strategy, Funded by Sovereignty

Unlike traders chasing short-term highs, El Salvador is essentially dollar-cost averaging (DCA) with public funds. This disciplined approach aims to accumulate BTC over time regardless of price fluctuations — a methodology used by long-term investors to reduce the impact of market timing.

Recent purchases appear to have been timed during market pullbacks, with the administration seizing red candles as entry points. 

With each new transaction, the message is clear: El Salvador sees Bitcoin not just as a speculative instrument, but as a financial backbone for its national future.

Integration Into Infrastructure

Beyond accumulation, the government has also invested in building a Bitcoin-centric economy — from geothermal-powered mining operations to wallet infrastructure (via the Chivo wallet), educational programs like “Mi Primer Bitcoin,” and BTC-backed bonds known as “Volcano Bonds.” These moves are building an ecosystem, not just a balance sheet.

ETH/BTC Crashes to Multi-Year Lows: What the Market is Telling Us

While El Salvador reinforces its BTC thesis, Ethereum is showing signs of vulnerability when measured against Bitcoin. The ETH/BTC ratio's drop to 0.02113 on April 6, 2025 — a level unseen since the early pandemic days of March 2020 — is more than just a number. It’s a reflection of sentiment, capital flow, and shifting conviction.

A 40% Year-to-Date Plunge

Ethereum has lost more than 40% of its value against Bitcoin since the start of 2025. While ETH remains the backbone of DeFi, NFTs, and Layer 2 solutions, investors are clearly recalibrating their risk exposure — prioritizing Bitcoin in uncertain times.

Key Market Signals

• Flight to Safety: Bitcoin's fixed supply, growing adoption, and institutional clarity are turning it into a macro hedge — much like gold during traditional financial crises.

• Ethereum’s Complexity: The network’s transition to Proof-of-Stake, while energy-efficient, has raised concerns around validator centralization and staking monopolies.

• Regulatory Overhang: Ethereum is still under scrutiny from regulators like the SEC, particularly regarding its classification as a security. This legal uncertainty continues to weigh on its upside potential.

Read Also: North Korea Now Has More Bitcoin (BTC) Than El Salvador, Thanks to Lazarus?

El Salvador’s Bitcoin Strategy in a Global Context

El Salvador isn’t just “buying Bitcoin.” It’s weaponizing Bitcoin — as a tool of monetary independence and a statement against the global financial order.

Breaking Away from IMF and USD Dependency

In rejecting IMF pressure and embracing Bitcoin, El Salvador is carving out a path that challenges the global dollar-centric system. 

Bitcoin allows for permissionless, borderless value transfer — aligning with the country’s aim to become less dependent on foreign debt structures and remittance intermediaries.

Geopolitical Ripple Effects

Other countries are watching closely. While no other nation has fully followed El Salvador’s lead (yet), several have debated similar initiatives. 

If El Salvador’s strategy proves successful — especially amid BTC’s increasing dominance — it could inspire a wave of crypto-forward policies across Latin America, Africa, and parts of Asia.

Read Also: Bitcoin Enters Bear Market, Will It Bounce Up or Will BTC Crash Further

Bitcoin vs Ethereum: Diverging Philosophies

This market moment amplifies the philosophical divide between the two largest cryptocurrencies:

Bitcoin’s simplicity, scarcity, and growing sovereign use case are boosting its dominance. Ethereum, despite its powerful smart contract ecosystem, is currently in a phase of narrative redefinition — and the ETH/BTC chart is bearing the consequences.

Conclusion

El Salvador’s continued Bitcoin accumulation amid Ethereum’s relative crash paints a powerful picture of conviction versus complexity. One asset is being adopted by a nation-state as monetary ballast. The other is wrestling with technical evolution and regulatory opacity.

In this evolving crypto chessboard, El Salvador has chosen its king — Bitcoin — and is boldly marching forward, no matter how shaky the board gets. As ETH/BTC hits five-year lows, the world is witnessing more than market noise. 

It's seeing a potential macro realignment: where Bitcoin isn’t just an asset — it’s a symbol of financial revolution.

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