Bitcoin Nation Loved by Crypto Faithful, But Not by Bondholders

El Salvador President Nayib Bukele made himself a hero to the Bitcoin faithful this year with a whole hearted embrace of the crypto currency. Bond investors have an entirely different view on the country’s leader.

The nation’s overseas notes posted the world’s worst performance this year with losses approaching 30%, according to data compiled by Bloomberg. Its $800 million of bonds coming due in early 2023 are now priced below 80 cents on the dollar, signaling skepticism that holders will get paid back on time.

The bond-market rout shows that for all the excitement Bukele generated in certain circles by …