El Salvador's Bold Bitcoin Bet Amid Market Shake-Up

El Salvador made a significant move in the Bitcoin world. They purchased a substantial amount of Bitcoin during a market downturn. This is not just any purchase—it's the largest single-day buy since they started using Bitcoin in 2021.

The Purchase

• Amount Purchased: Approximately 1,090 BTC
• Value: Around $100 million
• Total Holdings: 7,474 BTC

President Nayib Bukele shared this news on X, showing a screenshot of the government's Bitcoin dashboard.

Market Context

• Bitcoin's Price Drop: Nearly 30% from its high in October
• Reasons for Drop: Worries about interest rates and a correction in tech stocks

El Salvador's Bitcoin Strategy

• Regular Purchases: Buying 1 BTC every day since November 2022
• Strategic Bitcoin Reserve: A special way to store Bitcoin
• Wallet Management: Uses multiple wallets, each holding no more than 500 BTC
• Public Dashboard: Shows all Bitcoin balances

Previous Holdings and Profits

• Before Purchase: Between 6,100 and 6,313 BTC
• Profits in May and September: Bitcoin was trading near $100,000

Significance of the Purchase

• Market Impact: Supports the Bitcoin market during downturns
• Commitment: Shows El Salvador's commitment to Bitcoin
• Stand Against IMF: Continues buying despite IMF agreements

IMF Agreement

• Loan Deal: El Salvador agreed to stop some Bitcoin activities
• Continued Purchases: Bukele continues to buy Bitcoin
• IMF's Explanation: Claims the Strategic Bitcoin Reserve is different

Conclusion

This purchase is not just about the money—it's about standing up to the IMF and showing commitment to Bitcoin. El Salvador is one of the few countries with a Bitcoin treasury, and their actions support the Bitcoin market.