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

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.

The country acquired 1,090 Bitcoin (BTC) on Monday, bringing its total stash to 7,474 , which is now worth about $688 million, . President Nayib Bukele marked the occasion on X, sharing a screenshot of the Bitcoin Office dashboard and exclaiming "Hooah!" .

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,

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

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.

, the finance ministry stated that no new BTC had been bought since February 2025. Yet, Bukele’s recent announcement has led to confusion. that increases in reserves might result from internal wallet transfers rather than new acquisitions.

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

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 . 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.

of $264.63 million, but domestic use of Bitcoin remains limited, on the U.S. dollar.

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

as a way to promote financial inclusion and modernize the economy. The rollout encountered technical problems and significant public pushback, experiencing usability challenges. Despite these issues, the government has continued its efforts, 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.

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