Key Insights
El Salvador had resumed Bitcoin purchases after securing an IMF deal last year.
The initial purchase was around $1 million in December 2024. This was followed by another $1 million purchase in February 2025.
At present, El Salvador sits on a Bitcoin reserve of 6068 BTC, which is valued at approximately $6 billion.
El Salvador was one of the first countries to legalize Bitcoin transactions but had to withdraw from it under IMF pressure.
El Salvador seems to have stopped their Bitcoin purchases after 4 February 2025, on which date it had purchased 11 BTC for $1.1 million. Previously, it had purchased $1.1 billion in Bitcoins just after striking the IMF deal, despite IMF's opposition to BTC.
The country had struck a loan plan with the IMF which would grant it a $1.4 billion bailout package which it will receive over a period of 40 months. Based on this IMF package, the country was forced to amend its Bitcoin laws.
The most probable reason could be Bitcoin's stagnancy, which, if it lingers further, could in turn trigger another correction. Bitcoin is the leading cryptocurrency in the entire market (60% dominance), and a correction in BTC could lead to a market-wide sell-off.
Another reason behind the paused purchases could be El Salvador's current financial status, where it seems best to hold on to current investments rather than investing more.
Finally, the paused Bitcoin purchases could have been a part of the IMF deal. The UN-allied organization had previously forced Argentina to abandon its pro-crypto policy.
El Salvador sits on a Bitcoin reserve of at least $600 million (6,068 Bitcoins). This sum includes a profit of $333 million, a yield of 123%. The initially invested sum for the country was around $269 million.
However, should things turn worse, the country could turn to its Bitcoin to finance the government. Even though the amount falls short by 58%, it could still give the country enough time to arrange another loan deal.
El Salvador was one of the first nations to have started their Bitcoin accumulation journey way back in March 2022.
The government run by President Nayib Bukele was one of the first governments to institute Bitcoin as a legal tender. However, last December, under the IMF deal, they had to withdraw this legal tender status.
Lately, under Donald Trump, the US has also constituted an AI and Crypto Working Group under David Sacks, ex-CTO of PayPal. Bitcoin purchases were one of the key promises made by Donald Trump.
Despite the pause, the country could resume its purchases anytime soon. Experts agree that the price per BTC by the end of 2025 could around anywhere from $150k to $250k.
El Salvador's BIG Bet on Bitcoin to Keep Nayib Bukele and the Nation in Power
El Salvador's BIG Bet on Bitcoin to Keep Nayib Bukele and the Nation in Power
Reaping around 123% profits at current markets, the country is unlikely to move out of its Bitcoin investments. Even under financial stress, the President of El Salvador continues to purchase at least $1 million worth of Bitcoin every other month.
Top ETF firm VanEck has predicted a figure of $180k for Bitcoin, almost 85% higher than current levels.
Cathie Wood, the CEO of Ark Invest, did not comment on a short-term price but expects BTC to rise higher than $1.5 million in the next 5 years.
BlackRock CEO Larry Fink predicted that Bitcoin could go as high as $700k in the next few years if the fear of currency debasement due to inflation scares wealth funds.
Bitcoin's Price Stuck Between $95k and $98k
Tradingview
At press time, Bitcoin hovers between $95k and $97k, which acts as a zone of strong support for the cryptocurrency. A love below $95k could trigger a sell-off till $91k, while a move above $100k could lead to a new ATH.
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