El Salvador’s Bitcoin Strategy Amidst Market Decline

El Salvador is sticking to its strategy of accumulating Bitcoin despite recent market dips. Just on Tuesday, the Central American nation bought 1,091 BTC, which amounts to nearly $100 million.

President Nayib Bukele shared a screenshot on X that showcases the government’s Bitcoin holdings. In the last week alone, El Salvador acquired 1,098.19 BTC, raising its total to 7,474.37 BTC, valued at around $688 million.

Interestingly, even with the volatile market conditions, El Salvador continues to increase its Bitcoin reserves, acquiring 1 BTC each day. As one of the early adopters, the country has been steadily purchasing BTC daily since Bukele announced this approach in November 2022. It seems they are making these moves somewhat impulsively.

This calculated strategy indicates an emphasis on long-term goals: boosting their digital reserves, even as the market wavers.

Andre Dragos, a financial expert and head of European research at Bitwise, noted that countries are jumping into these purchases, which might illustrate a possible shift in how nations are approaching global finances.

Stacey Herbert, who leads the Bitcoin office in El Salvador, describes Bitcoin as a symbol of “freedom, transparency, and personal empowerment.”

She emphasized, “Bitcoin is really the opposite of governmental control. Bukele sees it as a legal tender to spread power rather than consolidate it.”

Herbert further mentioned that because of this approach, Bukele enjoys significant popularity in the country. “Salvadorans can truly sense it,” she added.

In a related note, the Czech National Bank (CNB) recently disclosed its first investment in digital assets, acquiring $1 million in Bitcoin and other cryptocurrencies.

Asian markets saw Bitcoin trading below $90,000 on Tuesday. The largest cryptocurrency dipped 4.91% to $90,708 in the past day due to panic selling.

As of now, Bitcoin is valued at approximately $90,268 each.

This panic selling led to short-term holders, those who have owned BTC for less than three months, facing losses totaling 148,000 BTC. This significant event is the largest of its kind since April 2025. Analysts at CryptoNews suggest this trend resembles past market peaks, hinting that sellers might not be finished yet.

While El Salvador’s recent $100 million acquisition offered a momentary reprieve, it has since been overshadowed by broader concerns. The current market landscape is seeing if long-term holders will step in to absorb the available supply at discounted rates.