Bitcoin News Today: El Salvador Buys Bitcoin Amid Downturn, Defying Market Panic

El Salvador's Bitcoin Strategy Intensifies Amid Market Volatility

El Salvador has added approximately 1,100 bitcoin to its national reserves in a $100 million purchase executed as the price fell below $90,000 for the first time in seven months. The acquisition, the largest single-day purchase since President Nayib Bukele's 2022 "1 BTC per day" dollar-cost-averaging policy was announced, brings the country's total holdings to roughly 7,470–7,500 BTC according to reports. The timing of the purchase underscored Bukele's commitment to maintaining a steady accumulation strategy despite broader market turbulence, including a 26% decline from Bitcoin's 52-week high of $126,200.

The move occurred amid a broader selloff in crypto markets, with Bitcoin ETFs experiencing $1.38 billion in outflows over the past three weeks and the Fear & Greed Index hitting "extreme fear" levels according to data. The dip below $90,000 on Nov. 17 and 18 marked a pivotal moment for institutional buyers, with El Salvador's purchase contrasting sharply against widespread panic selling. The country's Bitcoin Office has defended the strategy as consistent with its 2025 IMF program, which permits such purchases under the Strategic Bitcoin Reserve framework.

Bukele's administration has also expanded its crypto-related outreach, including a June 2025 meeting with U.S. White House adviser Bo Hines to discuss cross-border digital-asset regulations. Domestically, the government has diversified its Bitcoin holdings through geothermal-powered mining operations, which have added 474 BTC to reserves since 2021. These efforts highlight a multi-pronged approach that combines strategic purchases with domestic production.

The purchase has drawn attention amid broader market uncertainty. While El Salvador's $100 million bet reflects confidence in Bitcoin's long-term potential, analysts remain divided on whether the current correction signals a deeper downturn. Bernstein analysts noted the pullback aligns with historical patterns post-halving but stopped short of predicting a 60–70% crash. Meanwhile, other institutional players have also capitalized on the dip: MicroStrategy (MSTR) acquired $835.6 million in Bitcoin at an average price of $102,200 per coin, while Morgan Stanley sold $104 million in crypto-linked structured notes according to reports.

Critics have questioned the sustainability of El Salvador's strategy, particularly amid IMF-imposed fiscal constraints. The fund had initially sought to limit public-sector Bitcoin exposure under the 2025 financial program, though recent updates suggest the country's purchases remain within agreed parameters. Bukele, however, has remained undeterred, emphasizing that the policy will continue "until the program ends."

As Bitcoin's price stabilizes near $93,600 following Tuesday's rebound, the focus shifts to how other nations and institutions will respond to the volatility. For now, El Salvador's actions reaffirm its role as a global outlier in crypto adoption, betting on Bitcoin's resilience even as broader markets remain in flux.