## El Salvador Expands Its Bitcoin Holdings with a New Purchase Amid Market Fluctuations
El Salvador has recently added another 5 BTC to its national reserve, valued at approximately $415,000, as the leading cryptocurrency experienced a decline, dropping below $83,000 on Monday. This downturn reversed the previous day’s surge, which had seen Bitcoin reach $95,000. According to the El Salvador National Bitcoin Office, this latest acquisition marks a significant increase, as the country typically purchases just one Bitcoin per day. With this new addition, El Salvador’s total Bitcoin reserves now stand at 6,100.18 BTC, worth around $513 million at current market rates. This comes at a time when Bitcoin is facing challenges, particularly due to the impact of President Trump’s tariffs on Canada, Mexico, and China, which have contributed to a broader decline in the cryptocurrency market, erasing gains made in the U.S. crypto strategic reserve the day before.
## Continuing a Bitcoin Purchase Streak
El Salvador’s ongoing commitment to acquiring Bitcoin comes alongside an agreement to adjust some of its pro-Bitcoin policies as part of a $1.4 billion loan deal with the International Monetary Fund (IMF). These changes follow the landmark Bitcoin Law passed in September 2021, which made El Salvador the first country to officially recognize Bitcoin as legal tender. Among the agreements reached with the IMF is the decision to phase out the government-backed crypto wallet, Chivo, and to make it optional for local businesses to accept Bitcoin as a payment method.
As previously reported by ZyCrypto, El Salvador’s Congress acted swiftly to amend its Bitcoin Law to align with the IMF’s stipulations. Despite these adjustments, the Salvadoran government has not wavered in its Bitcoin purchasing strategy. In fact, just a day after finalizing the agreement with the IMF, the nation invested $1 million in Bitcoin. National Bitcoin Office Director Stacy Herbert stated in late December that El Salvador’s plans remain unchanged following the IMF agreement, with intentions to continue acquiring BTC for its Strategic Bitcoin Reserve “at possibly an accelerated pace.”
However, the IMF is now seeking to restrict the voluntary accumulation of Bitcoin by the public sector as part of the extended $1.4 billion funding agreement with El Salvador. This development adds another layer of complexity to the nation’s ongoing relationship with cryptocurrency and its ambitious plans for Bitcoin adoption.
