TLDR
- El Salvador adds 1,090 BTC worth $100M, bringing its total holdings to 7,474 BTC.
- The purchase occurs while Bitcoin’s price drops 4.92%, settling at $90,999.
- El Salvador has been buying Bitcoin daily since November 2022, despite IMF restrictions.
- The IMF’s $1.4 billion loan agreement with El Salvador restricts public sector Bitcoin purchases.
- The price of Bitcoin fluctuates between $95K and $90K, showing a downward trend in the market.
El Salvador has made its largest Bitcoin purchase to date, adding 1,090 BTC worth approximately $100 million. This acquisition, announced by the country’s Bitcoin Office on Monday evening, raises El Salvador’s total Bitcoin holdings to 7,474 BTC, valued around $676 million. Despite restrictions in place from the International Monetary Fund (IMF), El Salvador continues its aggressive Bitcoin acquisition strategy, drawing attention and concern from financial experts.
El Salvador’s Commitment to Bitcoin Despite IMF Restrictions
Since November 2022, El Salvador has been purchasing Bitcoin regularly, following a policy of buying at least one BTC daily. The most recent purchase of 1,090 BTC occurred when Bitcoin’s price dropped below $90,000, marking its lowest value since April. This strategic move to buy during market downturns is part of El Salvador’s broader plan to expand its Bitcoin reserves. The president shared a screenshot via his official X page confirming the purchase.
Despite the volatile market, President Nayib Bukele remains resolute in his commitment to Bitcoin. Bukele shared the purchase on social media, further emphasizing the government’s dedication to this digital asset strategy. However, the acquisition raises concerns regarding El Salvador’s compliance with its $1.4 billion loan agreement with the IMF.
Bukele’s Bitcoin Strategy Under IMF Scrutiny
The IMF’s loan agreement with El Salvador includes explicit restrictions on the purchase of Bitcoin by the public sector. These restrictions directly conflict with the country’s ongoing Bitcoin buying activities. El Salvador’s Bitcoin Office, led by Stacy Herbert, has confirmed that the government is purposefully disregarding the IMF’s terms. According to Herbert, the government views these purchases as a vital strategy for securing financial independence, regardless of the loan conditions.
The IMF has expressed concern over El Salvador’s Bitcoin policy, suggesting that the increase in Bitcoin holdings is due to the consolidation of assets from various government wallets. However, this contradicts earlier statements from El Salvador’s finance officials, who claimed no new Bitcoin had been purchased since February.
El Salvador’s Bitcoin acquisition continues to spark debates over transparency. Despite official claims that no new Bitcoin purchases have been made since February, President Bukele’s public announcements contradict this narrative. The government’s ongoing Bitcoin buys have led to increasing scrutiny regarding the transparency of El Salvador’s digital asset holdings.
Bitcoin Drops 4.92% in 24 Hours, Settling at $90K
Tracking the ongoing price trend at the time of press, CoinMarketCap data confirms that Bitcoin’s price has experienced a notable decline of 4.92% in the last 24 hours, dropping to $90,999.40. The market capitalization of Bitcoin currently stands at $1.81 trillion, reflecting a 4.9% decrease. During this period, the trading volume reached $115.55 billion, showing a 46.37% increase compared to the previous day.
- Source: CoinMarketCap
The price of Bitcoin fluctuated between $95,670 and $90,000, showing a consistent downward trend throughout the day. As the price dropped below $91,000, it continued to decline, settling at $90,999.40. This price movement indicates a decrease in Bitcoin’s value despite a higher trading volume. The total market activity during this period aligns with the ongoing bearish trend in the crypto market. The data showcases a downward price shift, with Bitcoin struggling to maintain its earlier levels.
The post El Salvador Defies IMF Restrictions with New $100M Acquisition as Bitcoin Dips 4% appeared first on Blockonomi.
Source: https://blockonomi.com/el-salvador-defies-imf-restrictions-with-new-100m-acquisition-as-bitcoin-dips-4/
