El Salvador Buys 1,090 BTC for $101M Amid Bitcoin Slump
El Salvador has intensified its Bitcoin accumulation strategy by purchasing an additional 1,090.19 BTC (about $101 million) on top of its daily one-BTC buys. Announced by President Nayib Bukele on X, this brings the nation’s total holdings to 7,474.37 BTC. The buy occurred during a sharp market pullback—Bitcoin briefly dipped below $90,000 and its 200-day moving average, triggering high volatility and liquidations. Technical indicators show BTC testing support between $88,000 and $90,000, with $95,000 as a key resistance level to avoid further downside. Since adopting Bitcoin as legal tender in 2021, El Salvador’s steady accumulation aims to lower average costs, mitigate volatility, and enhance financial autonomy. While the IMF has warned of risks tied to large crypto reserves, sovereign conviction and institutional dip-buying historically mark key accumulation phases ahead of price upswings. Traders should note that El Salvador’s ongoing BTC purchases signal long-term bullish momentum for Bitcoin.
Bullish
El Salvador’s large-scale Bitcoin purchases during a price slump reinforce market confidence. In the short term, sovereign dip-buying provides price support near key technical levels ($88,000–$90,000) and may dampen volatility triggered by rapid pullbacks. Over the long term, consistent accumulation by a national government enhances institutional credibility and could catalyze broader adoption. Historical precedents show that major accumulation phases often precede substantial upswings, making this development a bullish signal for Bitcoin traders.