El Salvador Ramps Up BTC Purchases as Market Slides Below $90,000

El Salvador has expanded its Bitcoin reserves during the latest market downturn, continuing its long-standing accumulation strategy despite global sell-offs and IMF pressure.

El Salvador Buys the Dip

According to updated data from the country’s Bitcoin Office, the government purchased 1,091 BTC on Tuesday alone, an investment worth nearly $100 million based on prevailing prices.

President Nayib Bukele later shared a screenshot on X revealing that the country has added 1,098.19 BTC over the past week. The latest purchases bring its national treasury to 7,474.37 BTC, valued at $672.85 million, and representing an unrealized profit of $264.63 million, per DropsTab figures.

The renewed buying spree comes as Bitcoin briefly fell below $90,000 for the first time in almost seven months, dragged down by widespread panic selling across global markets.

A Strategy Unshaken by Volatility

Despite heightened volatility, El Salvador has maintained its commitment to accumulate 1 BTC per day, a program first announced by Bukele in November 2022. The nation became the first country to adopt Bitcoin as legal tender in 2021 and has since positioned itself as a long-term believer in the asset’s potential.

Adoption among everyday Salvadorans, however, remains limited, as the U.S. dollar continues to dominate daily transactions. Nevertheless, the government has not deviated from its approach, even under pressure from international bodies.

IMF Requests Halting BTC Strategy

Earlier this year, the International Monetary Fund urged the country to halt its public-sector Bitcoin purchases as part of negotiations for a $1.4 billion financing package. Although El Salvador amended parts of its Bitcoin legislation by making the acceptance of BTC voluntary instead of mandatory, the accumulation strategy remains fully intact.

As of now, El Salvador ranks as the fifth-largest government holder of Bitcoin, behind the U.S., China, and the UK, according to bitcointreasuries.net.

Market Reaction and Short-Term Pressure

Bitcoin’s latest plunge rattled Asian markets on Tuesday, with the asset slipping 4.91% in 24 hours to trade at $90,708, before declining further to $90,268 at the time of writing, according to CoinMarketCap.

Blockchain data indicates that short-term holders, mainly wallets holding BTC for less than three months, liquidated 148,000 BTC at a loss, marking the largest capitulation event since April 2025. Analysts at Cryptonews noted that the pattern resembles previous cycle peaks, suggesting selling pressure may continue in the near term.

El Salvador’s $100 million BTC purchase offered momentary market relief but was overshadowed by broader de-risking across investor segments. Market observers now look to long-term holders to determine whether discounted supply will be absorbed or whether further downside remains ahead.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.