Bitcoin News Today: El Salvador Defies IMF, Buys $100M Bitcoin as Price Plummets

El Salvador added $100 million worth of Bitcoin to its national reserves this week, seizing the opportunity to "buy the dip" as the cryptocurrency slumped to a seven-month low. The Central American nation purchased 1,090 Bitcoin (BTC) on Monday, pushing its total holdings to 7,474 BTC, valued at approximately $688 million, according to data from the country's Bitcoin Office. President Nayib Bukele celebrated the acquisition on X, posting a screenshot of the Bitcoin Office dashboard with a triumphant "Hooah!" according to a report.

The move comes as Bitcoin fell below $90,000 on Tuesday, marking its lowest level since April 2025. The purchase aligns with El Salvador's long-standing "1 BTC per day" strategy, a policy introduced in November 2022. The country's Bitcoin Office has maintained this approach through all market cycles, with officials emphasizing a commitment to "freedom, transparency, and individual empowerment" according to reports.

El Salvador's latest acquisition appears to contradict its $1.4 billion IMF loan agreement, which required the government to curtail public-sector Bitcoin purchases. Earlier this year, the country's finance ministry claimed it had ceased new BTC purchases since February 2025. However, Bukele's public confirmation of the recent buy has sparked confusion. An IMF report noted that reserve increases could stem from internal wallet consolidations rather than fresh purchases.

The International Monetary Fund has long criticized El Salvador's Bitcoin experiment, warning of risks to financial stability and consumer protection. In 2024, the IMF urged the nation to rescind Bitcoin's legal tender status, a move it agreed to as part of the loan deal. Despite these constraints, El Salvador continues to expand its holdings, with officials asserting that blockchain transparency ensures accountability.

The purchase arrives during one of Bitcoin's steepest declines of the year. The asset has fallen over 26% from its October peak near $126,000, with $19 billion in leveraged long positions liquidated in recent days. Short-term holders-wallets holding BTC for less than 90 days-sold 148,000 BTC at a loss, the largest capitulation since April according to analysis. Analysts suggest such selling patterns often precede market bottoms, though the drawdown may not yet be complete.

El Salvador's strategy has drawn both praise and skepticism. Proponents argue that the country's consistent accumulation could position it to benefit if Bitcoin stabilizes in the $80,000–$90,000 range. Critics, however, highlight the economic risks of tying public funds to a volatile asset. The government's Bitcoin reserves now carry an unrealized profit of $264.63 million, though domestic adoption of the cryptocurrency remains low, with most Salvadorans still relying on the U.S. dollar.

El Salvador became the first nation to adopt Bitcoin as legal tender in September 2021, a move championed by Bukele as a tool for financial inclusion and economic modernization. The rollout faced technical challenges and widespread public resistance, with a government-backed Chivo wallet app plagued by usability issues. Despite these hurdles, the administration has persisted, expanding its holdings through daily purchases and exploring Bitcoin-backed bonds and the controversial "Bitcoin City" project.

The country's latest $100 million buy underscores its unwavering commitment to the digital asset, even as global institutions remain wary. With Bitcoin's price fluctuating and the IMF's conditions in play, El Salvador's strategy will likely remain a focal point in the ongoing debate over cryptocurrency's role in national economies.

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