Bitcoin News Update: El Salvador Challenges IMF, Purchases $100M in Bitcoin Amid Price Drop

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Bitcoin News Update: El Salvador Challenges IMF, Purchases $100M in Bitcoin Amid Price Drop

Bitget-RWA2025/11/19 02:32

By:Bitget-RWA

- El Salvador bought $100M Bitcoin at a seven-month low, boosting reserves to 7,474 BTC ($688M) via its "1 BTC per day" strategy. - The purchase contradicts IMF loan terms requiring curtailed public Bitcoin buys, sparking confusion amid claims of halted purchases since February 2025. - Critics warn of economic risks from volatile assets, while officials defend blockchain transparency; Bitcoin's 26% drop triggered $19B in liquidations. - Despite IMF warnings and low domestic adoption, El Salvador's $264M un

This week, El Salvador increased its national Bitcoin reserves by $100 million, taking advantage of a significant price drop that sent the cryptocurrency to its lowest point in seven months.

Bitcoin

The country acquired 1,090 Bitcoin (BTC) on Monday, bringing its total stash to 7,474

BTC

, which is now worth about $688 million,

according to data from the country's Bitcoin Office

. President Nayib Bukele marked the occasion on X, sharing a screenshot of the Bitcoin Office dashboard and exclaiming "Hooah!"

according to a report

This purchase came as Bitcoin dipped below $90,000 on Tuesday, its lowest value since April 2025. The acquisition is in line with El Salvador’s ongoing “1 BTC per day” initiative,

a policy introduced in November 2022

. The Bitcoin Office has stuck with this plan through all market conditions, with officials reiterating their dedication to “freedom, transparency, and individual empowerment”

according to reports

This latest purchase appears to go against the terms of El Salvador’s $1.4 billion loan from the IMF, which required a reduction in government Bitcoin buying.

Earlier this year

, the finance ministry stated that no new BTC had been bought since February 2025. Yet, Bukele’s recent announcement has led to confusion.

An IMF report noted

that increases in reserves might result from internal wallet transfers rather than new acquisitions.

Bitcoin News Update: El Salvador Challenges IMF, Purchases $100M in Bitcoin Amid Price Drop image 0

The International Monetary Fund has consistently criticized El Salvador’s Bitcoin policy, warning about potential threats to financial stability and consumer safety.

In 2024

, the IMF pressed the government to revoke Bitcoin’s legal tender status, a condition included in the loan agreement. Despite these restrictions, El Salvador continues to grow its Bitcoin reserves,

with officials asserting

that blockchain’s transparency guarantees accountability.

This purchase comes amid one of Bitcoin’s sharpest drops this year. The cryptocurrency has lost more than 26% since peaking near $126,000 in October,

with $19 billion in leveraged long positions liquidated

over the past few days. Short-term holders—wallets that kept BTC for under 90 days—sold off 148,000 BTC at a loss, marking the largest sell-off since April

according to analysis

. Experts note that such selling often signals a market bottom, though the decline may not be over yet.

El Salvador’s approach has attracted both supporters and critics. Advocates believe that steady accumulation could pay off if Bitcoin stabilizes between $80,000 and $90,000. Skeptics, on the other hand, warn about the dangers of linking public finances to a highly volatile asset.

The government's Bitcoin reserves now carry an unrealized profit

of $264.63 million, but domestic use of Bitcoin remains limited,

with most Salvadorans still relying

on the U.S. dollar.

El Salvador became the first country to make Bitcoin legal tender in September 2021,

a move championed by Bukele

as a way to promote financial inclusion and modernize the economy. The rollout encountered technical problems and significant public pushback,

with a government-backed Chivo wallet app

experiencing usability challenges. Despite these issues, the government has continued its efforts,

expanding its holdings through daily purchases

and exploring initiatives like Bitcoin-backed bonds and the ambitious “Bitcoin City” project.

The recent $100 million investment highlights El Salvador’s steadfast belief in digital assets, even as international organizations remain cautious. With Bitcoin’s price volatility and IMF requirements in play, the country’s strategy is likely to stay at the center of discussions about the future of cryptocurrency in national economies.

---

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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