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Bitcoin Updates: El Salvador Purchases Bitcoin During Market Slump, Challenging Widespread Panic

Bitcoin Updates: El Salvador Purchases Bitcoin During Market Slump, Challenging Widespread Panic

Bitget-RWA2025/11/18 18:52
By:Bitget-RWA

- El Salvador bought 1,100 BTC at $90,000, boosting reserves to 7,470–7,500 BTC amid market selloffs. - The purchase defied crypto panic, aligning with Bukele's 2025 IMF-backed Bitcoin accumulation strategy. - Domestic geothermal mining added 474 BTC since 2021, while critics question fiscal sustainability under IMF constraints. - Global institutions like MicroStrategy also capitalized on the dip, but Bitcoin remains volatile near $93,600.

El Salvador's

Approach Ramps Up During Market Swings

El Salvador recently boosted its national bitcoin reserves by about 1,100 coins, spending $100 million

below $90,000—a level not seen in seven months. This marks the country’s largest single-day buy since President Nayib Bukele introduced the “1 BTC per day” accumulation plan in 2022, raising El Salvador’s total holdings to an estimated 7,470–7,500 BTC . The timing of this acquisition highlights Bukele’s ongoing commitment to a consistent buying strategy, even as the market faces significant volatility, including of $126,200.

This move came during a broader downturn in the crypto sector,

over the last three weeks and the Fear & Greed Index plunging to “extreme fear” . The dip below $90,000 on November 17 and 18 was a key moment for institutional investors, with El Salvador’s purchase standing out against a backdrop of widespread selling. The nation’s Bitcoin Office has with its 2025 IMF agreement, which allows such investments under the Strategic Bitcoin Reserve policy.

Bitcoin Updates: El Salvador Purchases Bitcoin During Market Slump, Challenging Widespread Panic image 0
Bukele’s government has also broadened its crypto initiatives, to discuss international digital asset regulations. On the home front, the administration has diversified its bitcoin assets through geothermal-powered mining, . These strategies illustrate a comprehensive approach that blends strategic acquisitions with local production.

The high-profile purchase has drawn attention amid ongoing market instability. While El Salvador’s $100 million investment signals faith in bitcoin’s future, experts remain split on whether the current downturn could deepen further.

with typical post-halving trends, but stopped short of forecasting a 60–70% plunge. Meanwhile, other major players have also taken advantage of the price drop: MicroStrategy (MSTR) bought $835.6 million in bitcoin at an average of $102,200 per coin, and Morgan Stanley issued $104 million in crypto-linked structured notes .

Some critics have raised concerns about the long-term viability of El Salvador’s approach, especially given fiscal restrictions from the IMF. The fund initially aimed to limit public bitcoin exposure under the 2025 program, though

still within the agreed boundaries. Bukele, however, has remained steadfast, stating the policy will persist “until the program ends.”

As Bitcoin’s value

, attention is turning to how other countries and institutions might react to the ongoing volatility. For now, El Salvador continues to stand out globally for its bold embrace of crypto, doubling down on bitcoin’s durability while markets remain unsettled.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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