El Salvador Buys 21 BTC Defying IMF, Hits 6,313 BTC Reserve
On the fourth anniversary of adopting Bitcoin as legal tender, El Salvador purchased 21 BTC—a symbolic nod to Bitcoin’s 21 million cap—despite an IMF agreement that froze voluntary crypto acquisitions. Since March 2024, the government has bought 1 BTC per day, bringing its reserves to 6,313 BTC (≈ USD 700 million).
The December IMF Extended Fund Facility requires El Salvador to halt new Bitcoin buys and amend its Bitcoin Law. IMF estimates put the country’s Bitcoin expenditure at USD 300 million since 2021, with over USD 400 million in unrealized gains, though limited disclosure hinders independent audit.
To bolster security against quantum threats and improve transparency, the National Bitcoin Office redistributed its holdings across addresses capped at 500 BTC each and launched a public dashboard. Supporters praise the long-term strategy; critics warn of strained IMF relations and compliance reviews through 2027. The move reinforces market sentiment around El Salvador’s bullish stance but raises questions on policy conflicts and audit clarity.
Bullish
El Salvador’s continued Bitcoin purchases signal strong government backing and steady reserve accumulation, reinforcing positive market sentiment. Short term, traders may interpret the 21 BTC buy and daily acquisitions as a bullish catalyst for BTC price momentum. Long term, the strategy underscores a commitment to Bitcoin’s store-of-value thesis. Although conflicts with the IMF introduce regulatory uncertainty, the transparent redistribution of reserves and public dashboard mitigate some risk, keeping the overall outlook bullish.