El Salvador Doubles Down on Bitcoin Despite IMF Deal

El Salvador, the first country to adopt Bitcoin as legal tender, has once again demonstrated its commitment to cryptocurrencies by purchasing an additional 12 BTC on February 4, despite a brief market downturn. The Central American nation's Bitcoin Office tracker confirmed the acquisition, which saw 11 BTC bought for just over $1.1 million at an average price of $101,816 per coin, followed by an additional BTC purchase for $99,114.

This latest acquisition brings El Salvador's total Bitcoin holdings to 6,068 BTC, valued at over $554 million. The purchase comes after President Nayib Bukele announced a $1.4 billion financing agreement with the International Monetary Fund (IMF) last month, which required El Salvador to scale back certain Bitcoin-related activities. In response to the IMF deal, El Salvador made several changes to its Bitcoin policies, including making Bitcoin acceptance voluntary for private businesses and reducing its involvement in the Chivo wallet, a state-sponsored crypto payment platform.

Despite these concessions, El Salvador's Bitcoin buying spree continues unabated. The country has accumulated 21 BTC this week alone and 60 BTC in the last 30 days, according to data shared by the National Bitcoin Office on X. The office declared in a February 4 post, "The first Strategic Bitcoin Reserve in the world keeps growing, and so El Salvador keeps winning."

Bitcoin's price dipped to a 24-hour low of around $96,000 before rebounding to approximately $98,000. El Salvador capitalized on the market dip to expand its Bitcoin reserves, highlighting President Bukele's steadfast belief in the long-term value of digital assets. National Bitcoin Office Director Stacy Herbert stated in a December that El Salvador's crypto ambitions remain intact, even amid international scrutiny.

As one of the most prominent state actors involved in Bitcoin adoption, El Salvador's approach continues to be a point of interest for global financial markets. The country's commitment to cryptocurrencies, despite facing international pressure, underscores its belief in the potential of digital assets to drive economic growth and innovation.