El Salvador Buys $100 Million Worth of Bitcoin as BTC Slips Past $90,000

El Salvador Buys Over 1,000 Bitcoin Amid Market Turmoil

El Salvador accelerated its Bitcoin accumulation this week, acquiring approximately 1,098 BTC at a cost of around $100 million, marking the largest single-day purchase in the country’s history.

The acquisition, executed at 6:01 p.m. Eastern time, raised the nation’s total holdings to roughly 7,474 BTC, valued at about $676 million at current market prices.

President Nayib Bukele shared a screenshot of the purchase on X, adding a celebratory “Hooah!” to highlight the buy.

Why Did El Salvador Increase Its Bitcoin Holdings Now

The timing coincided with Bitcoin dipping below $90,000, its first drop under this level since April 2025.

While small investors rushed to sell amid a nearly 5% one-day decline—resulting in around 148,000 BTC changing hands—El Salvador continued to buy.

The government has maintained a policy of purchasing 1 BTC daily since November 2022, turning market volatility into an opportunity to lower the average cost of its reserves.

Long-Term Strategy and Daily Purchases

Stacy Herbert, director of El Salvador’s Bitcoin Office, explained that daily acquisitions aim to give citizens more control over their finances, reducing reliance on traditional banking systems.

Herbert wrote in March, defending the transparency and permanence of on-chain records.

“Some ‘bitcoiners’ trust the words of the IMF over the stacking actions of El Salvador recorded for eternity onto the Bitcoin blockchain.”

The government’s approach demonstrates its commitment to building a long-term financial foundation using Bitcoin rather than chasing short-term gains.

IMF Agreement Raises Questions About Legality of Purchases

El Salvador’s aggressive accumulation sits in a grey area under a $1.4 billion IMF loan agreement, which restricts public-sector Bitcoin purchases.

In July, top finance officials stated the country had not bought any Bitcoin since February, contradicting Bukele’s claims of ongoing purchases.

An IMF report clarified that recent increases in the Strategic Bitcoin Reserve mainly reflect internal transfers between government wallets, not necessarily new market acquisitions.

Despite this, Bukele and Herbert insist that the country continues to grow its holdings, framing it as a matter of monetary sovereignty.

Bitcoin Price Volatility Creates Market Pressure

The latest buy came amid sharp market volatility.

Spot ETF outflows accelerated during the week, and the Fear & Greed Index fell to “extreme fear.”

While small investors scrambled to sell, El Salvador maintained a calm, methodical approach, reinforcing its role as a test case for sovereign digital asset adoption.

The country’s measured strategy contrasts with panic-driven market behaviour and highlights the government’s long-term view.

Global Attention on El Salvador’s Bitcoin Experiment

El Salvador’s holdings, now the fifth-largest government-owned BTC reserve in the world, trail only the United States, China, the United Kingdom, and the European Union.

The country has already seen nearly $265 million in unrealised gains from its accumulated Bitcoin.

Its stance has attracted attention from other nations, with the Czech National Bank recently disclosing its first Bitcoin and cryptocurrency purchases worth $1 million.

Mining and Multi-Pronged Accumulation Efforts

Beyond purchases, El Salvador has mined approximately 474 BTC since 2021 using geothermal energy, reinforcing its diversified approach to increasing reserves.

The government continues to publicly track all holdings on the blockchain, ensuring transparency and verifiability.

Will El Salvador’s Strategy Influence Other Nations

El Salvador’s large-scale adoption of Bitcoin has raised questions about transparency, fiscal risk, and the interplay with international financial agreements.

Yet, Bukele remains steadfast: the daily accumulation policy continues, price dips are seen as opportunities, and the country positions itself as a leading experiment in sovereign digital currency adoption.

This approach, blending daily purchases, opportunistic acquisitions during price dips, and on-chain transparency, keeps the spotlight on El Salvador as a unique case study for nations considering long-term engagement with Bitcoin.