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El Salvador Buys 1,000 Bitcoin Amid IMF Concerns

El Salvador Makes Largest Daily Bitcoin Purchase, Adding 1,000 Coins Amid IMF Scrutiny and Market Volatility

  • El salvador increased its Bitcoin holdings by 1,000 coins, marking its largest daily accumulation.
  • The nation’s total Bitcoin stockpile reached about 7,500 coins, valued near $700 million.
  • The IMF questioned whether recent increases represent new purchases or internal transfers.
  • El Salvador committed to making Bitcoin payment acceptance voluntary under a $1.4 billion agreement with the IMF.
  • Bitcoin’s market price has declined approximately 27% from its recent peak, impacting the value of El Salvador’s holdings.

El Salvador President Nayib Bukele announced on Monday that the country added 1,000 Bitcoin to its reserves, a purchase valued at about $100 million. This addition represents the largest daily increase since the nation started acquiring Bitcoin. The total Bitcoin holdings now stand at approximately 7,500 coins, with a value close to $700 million, according to the official dashboard from the country’s Bitcoin Office.

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Despite the increase, the International Monetary Fund (IMF) has expressed doubts about whether these additions are actual purchases or simply internal transfers, as noted in a statement to Decrypt. The Salvadoran government rejected this characterization, stating that Bitcoin buying continued even after scaling back certain Bitcoin initiatives last year.

As part of a $1.4 billion loan agreement with the IMF, El Salvador agreed to make Bitcoin payment acceptance voluntary and to reduce activities related to the Chivo digital wallet, which initially offered a $30 incentive to new users. This loan condition reflects steps toward moderating the country’s Bitcoin policy.

The price of Bitcoin has fallen 27% from a recent all-time high of $126,000, affecting the overall worth of El Salvador’s Bitcoin portfolio. At its peak, the holdings were valued near $800 million, but they have lost nearly $200 million in value since then, based on data provided by CoinGecko. Last month, President Bukele shared that the portfolio showed an unrealized profit of about $475 million, though that figure is no longer displayed on the Bitcoin Office’s website.

Previously, in 2022, Bukele had committed to purchasing one Bitcoin per day following the collapse of crypto exchange FTX, when Bitcoin traded around $16,700. The recent large single-day acquisition marks a notable change from El Salvador’s usual purchase frequency.

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Market sentiment remains divided, with traders on the prediction market Myriad evenly split between feelings of “Greed” and “Fear” regarding Bitcoin’s near-term outlook.

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