Bitcoin News Today: Bitcoin Value Surges 7900% Since 2018 Seizure Bulgaria Debt

In 2018, Bulgarian authorities seized approximately 213,500 Bitcoins during a crackdown on a criminal network. At the time, the value of these assets was estimated to be around $3–3.5 billion, which covered nearly one-fifth of the nation’s public debt. The authorities decided to sell these Bitcoins, but the decision has since sparked debate due to the dramatic surge in Bitcoin’s price.

Today, with Bitcoin’s price exceeding $117,000 per coin, the value of the seized Bitcoins has skyrocketed to around $25 billion. This sum is roughly equivalent to 79–82 percent of Bulgaria’s current national debt, which is estimated to be around $24–31 billion. The resurfacing of this data has led to discussions about the potential of Bitcoin to address public debt problems.

Crypto figure Changpeng Zhao, also known as “CZ,” highlighted that “Bitcoin can solve most public debt problems,” using Bulgaria’s situation as an example. However, economists hold mixed views on the matter. Some argue that the 2018 sale was a prudent move given Bitcoin’s volatility and regulatory uncertainties at the time. Others point out the opportunity cost, suggesting that retaining even a modest portion of the Bitcoins could have yielded a multi-billion-dollar reserve.

As Bulgaria prepares to enter the eurozone in early 2026, the debate over how to manage seized crypto holdings has resurfaced. This highlights the tension between short-term fiscal needs and long-term strategic reserves. The significant increase in the value of Bitcoin has led several countries to consider holding onto confiscated assets rather than selling them. This trend is seen in the establishment of a Strategic Bitcoin Reserve by the US, with Ukraine and Pakistan also exploring their cryptocurrency reserves.

Proponents of this strategy argue that Bitcoin can protect against local currency devaluation and offer potential gains from state-backed Bitcoin mining. However, there are downsides, including the volatility and deep price corrections that top cryptocurrencies can experience. Countries looking to adopt Bitcoin for public debt may also face pushback from international lenders such as the IMF and the World Bank.

The conversation around Bitcoin’s utility in solving national debt crises has intensified, with Bulgaria’s experience serving as a case study. The appreciating value of Bitcoin has led to discussions about its potential to offset a substantial portion of national debt, as seen in Bulgaria’s situation where the value of the seized Bitcoins now equals nearly 80% of its public debt. This has sparked interest in holding Bitcoin as a strategic reserve, with countries exploring the benefits and challenges of this approach.