Simply put
- Nayib Bukele recently emphasized El Salvador’s Bitcoin reserves.
- The country experienced its largest single-day increase in Bitcoin holdings.
- The IMF raised concerns about El Salvador’s Bitcoin acquisitions.
On Monday, President Nayib Bukele hinted that El Salvador might acquire an additional 1,000 bitcoins, valued at around $100 million, despite current prices being at six-month lows.
He expressed surprise on social media, sharing a screenshot indicating that the nation’s Bitcoin stockpile had surged by 17% in just a day.
As per various sources, El Salvador reportedly possesses approximately 7,500 Bitcoins totaling about $698 million. This information stems from the country’s Bitcoin Office. However, the International Monetary Fund suggested that this increase was due to internal transfers rather than outright purchases.
A government spokesperson defended their practices, stating that Bukele’s Bitcoin purchases have been consistent since the country embraced Bitcoin. They also noted that the country had reduced its Bitcoin initiatives last year.
Under a $1.4 billion loan agreement with the IMF, El Salvador committed to making Bitcoin payments optional and announced a decrease in its involvement with Chivo, the digital wallet program that offers new users a $30 incentive.
In 2024, the country began publicly releasing details of its Bitcoin holdings, marking a significant increase of over 1,000 Bitcoins in a single day, a noticeable shift from Bukele’s usual announcements of smaller purchases.
Back in 2022, Bukele indicated plans to buy Bitcoin daily, coinciding with a time when Bitcoin was trading around $16,700 following significant market turmoil.
Currently, Bitcoin’s value has dipped 27% from last month’s peak of $126,000, with traders split in their sentiment between “greed” and “fear,” according to Myriad Markets.
During Bitcoin’s all-time high, El Salvador’s holdings were nearly worth $800 million but have since declined in value by around $200 million, as reported by CoinGecko.
Earlier last month, Bukele shared that El Salvador had unrealized gains of approximately $475 million, although this information appears to have been removed from the Bitcoin Office’s website dashboard.
