Bitcoin News Today: El Salvador's Bitcoin Defiance: Building $775M Reserve Despite IMF Pressure

El Salvador's Bitcoin portfolio has surged to $775 million as of October 2025, marking a 162% increase since 2022. The country now holds 6,246 Bitcoin (BTC), generating over $475 million in unrealized gainsEl Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset^[2]. This growth is attributed to a strategic accumulation approach combining daily purchases, geothermal energy-powered mining, and dollar-cost averaging. The government's commitment to Bitcoin, championed by President Nayib Bukele, has weathered early volatility and international skepticism, positioning El Salvador as the sixth-largest sovereign holder of Bitcoin globallyEl Salvador’s Bitcoin Portfolio Reaches $740M Mark^[1].

The nation's strategy leverages its volcanic geothermal resources to reduce mining costs while diversifying acquisition methods. Daily BTC purchases, adjusted for market fluctuations, have allowed the portfolio to capitalize on Bitcoin's price rally. As of October 2025, Bitcoin trades at an average of $125,500 per coin, with its market capitalization reaching $2.5 trillion-ranking it as the seventh most valuable asset globallyEl Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset^[2]. Analysts, including Standard Chartered's Geoffrey Kendrick, suggest Bitcoin could climb to $135,000 in the short term and potentially $200,000 by late 2025, driven by sustained ETF inflowsEl Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset^[2].

Despite restrictions from the International Monetary Fund (IMF), El Salvador has continued its Bitcoin accumulation through technical workarounds. In 2023, the IMF imposed limits on Bitcoin's use in public sectors as part of a $1.4 billion loan agreement. However, the government has maintained its reserves while scaling back mandatory Bitcoin acceptance for merchants. President Bukele has dismissed external pressures, emphasizing Bitcoin's potential to enhance national wealth and financial independenceEl Salvador’s Bitcoin Portfolio Reaches $740M Mark^[1].

A recent policy shift, the August 2025 Investment Banking Law, has further institutionalized Bitcoin adoption. The law enables licensed banks to hold digital assets and serve "sophisticated investors," requiring $50 million in capital. This move aims to attract foreign investment and establish El Salvador as a regional crypto hubEl Salvador's new law ignites institutional demand^[4]. The law also facilitates tokenized bonds, stablecoin services, and crypto-based financing, aligning with the government's broader economic strategy.

El Salvador's efforts have drawn global attention, with the country hosting the Bitcoin Histórico conference in November 2025-a first-of-its-kind government-backed event celebrating Bitcoin's role in financial freedomEl Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset^[2]. The conference, held in San Salvador, will feature discussions on Bitcoin's integration into national economies and its potential to drive innovation in emerging markets.

While challenges remain, including market volatility and regulatory scrutiny, El Salvador's Bitcoin experiment has demonstrated resilience. The country's strategic reserve, now valued at $775 million, serves as a model for nations exploring cryptocurrency adoption. With Bitcoin's growing acceptance as a macro-level asset and El Salvador's continued investment in mining infrastructure, the country's approach could influence future global crypto policiesEl Salvador’s Bitcoin Portfolio Reaches $740M Mark^[1].