The Daily: El Salvador’s bitcoin stash hits fresh peak as BTC whipsaws near all-time highs, Strategy faces class action lawsuit, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

I hope you had a good weekend, folks. Bitcoin’s whipsawing price action on Sunday and Monday cleared out both longs and shorts. But is this the final shakeout before all-time highs — or will potential daily bearish divergence play out and drag the crypto market into another correction?

In today’s newsletter, El Salvador’s bitcoin stash hits a fresh peak, Strategy and co-founder Michael Saylor face a class action lawsuit, Bybit enables USDT-paired equities trading, and more.

Meanwhile, altcoins retreat amid macro volatility following Moody’s U.S. credit rating cut.

Let’s get started.

El Salvador’s bitcoin stash hits fresh peak

El Salvador’s bitcoin portfolio has hit over $357 million in unrealized profit as the foremost cryptocurrency’s price whipsaws near its all-time high.

• President Nayib Bukele reaffirmed his commitment to buying BTC despite the country’s $1.4 billion deal with the IMF, which included an agreement to scale back some of El Salvador’s bitcoin-related activities.
• The country’s bitcoin stash now totals 6,181 coins and reached a peak portfolio value of more than $650 million, according to Bukele, as bitcoin surged above $106,000 on Monday before correcting.
• El Salvador’s bitcoin holdings were acquired for a total of $287.1 million, giving it an approximate 125% unrealized gain overall and 12.2% year-to-date.
• In June 2021, El Salvador became the first country to formally adopt bitcoin as a legal tender, as proposed by Bukele, to promote financial inclusion.
• Since then, the country has been steadily accumulating bitcoin — a strategy Bukele previously emphasized will continue regardless of international pressure or market cycles.

Strategy and Michael Saylor face class action lawsuit

A group of investors filed a class action lawsuit against Strategy and its co-founder Michael Saylor, alleging they misled the market about the firm’s profitability and bitcoin-related risks.

• The suit claims that Strategy made overly positive projections after switching to fair value accounting under the FASB’s new rules, while downplaying potential losses.
• CEO Phong Le and CFO Andrew Kang are also named as defendants in the case, covering activity between April 2024 and April 2025.
• Strategy acknowledged the lawsuit in an SEC filing on Monday and vowed to fight the claims, but said it couldn’t predict the potential outcome or losses.
• In the same 8-K filing, the firm also disclosed it bought another 7,390 BTC for around $765 million last week, bringing its total holdings to a staggering 576,230 BTC — worth over $59 billion.

Bybit launches USDT-paired equities, including Coinbase and the ‘Magnificent 7’

Bybit has launched USDT-paired stock trading for 78 global companies, including Coinbase and the “Magnificent 7,” as part of its expanded gold, commodities, and FX suite.

• The platform uses a contract-for-difference (CFD) model, allowing users to speculate on price movements without owning the underlying shares, though they may also receive dividends.
• Bybit’s move reflects a broader push among crypto exchanges like Kraken and Crypto.com to blend traditional finance with digital asset services.
• Conversely, platforms like Robinhood and eToro, initially focused on traditional assets, also offer crypto trading, though with limited listings.

Ethereum labeled ‘standout performer’ as global crypto funds add $785 million

Global crypto funds added $785 million in net inflows last week, marking five straight weeks of gains and a full recovery from the February to March outflows amid the President Trump tariff-fueled market slump, according to CoinShares data.

• Ethereum was labeled the “standout performer,” by Head of Research James Butterfill in a Monday report, pulling in $205 million as investor sentiment rebounded after its Pectra upgrade and leadership changes at the Ethereum Foundation.
• Bitcoin funds continued to dominate with $557 million in inflows, though that represents a decrease from $887 million during the prior week — likely due to continued hawkish signals from the U.S. Federal Reserve, Butterfill added.
• Meanwhile, Solana-based investment products were the only ones to witness net outflows last week, with a modest $0.9 million exiting the funds.

Bitcoin transaction fees reach highest level in 2025

Bitcoin transaction fees reached a 2025 peak of $2.40 over the weekend as demand for blockspace jumped alongside the cryptocurrency’s recent ascent toward all-time highs.

• While daily transactions have dropped 35% since April, the seven-day moving average for bitcoin fees has increased by about $1 since the start of May.
• Meanwhile, bitcoin’s illiquid supply is also at a record level, according to Glassnode data, setting the stage for a potential supply shock if demand continues to rise.

In the next 24 hours

• U.S. FOMC members Thomas Barkin and Raphael Bostic will speak at 9 a.m. ET on Tuesday. The Federal Reserve’s Susan Collins follows at 9:30 a.m. FOMC members Adriana Kugler and Mary Daly speak at 5 p.m. and 7 p.m., respectively.
• Pyth Network and EigenLayer have token unlocks.
• Mayor Eric Adams’ NY Crypto Summit gets underway. Solana Accelerate continues in the city.

Never miss a beat with The Block’s daily digest of the most influential events happening across the digital asset ecosystem.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.