Despite its deal with the IMF, El Salvador is not entirely abandoning its BTC accumulation strategy to show complete allegiance to Bitcoin
El Salvador president Nayib Bukele has decided that owning a Bitcoin strategy is more advantageous than heeding the International Monetary Fund’s (IMF) warning. He recently insisted that the nation will continue with its acquisition of the flagship cryptocurrency.
El Salvador Dismisses IMF Restrictions
As part of their $3.5 billion financial agreement, the IMF restricted El Salvador’s further purchase of BTC.
The IMF’s stance allegedly stems from the need to safeguard financial stability and integrity alongside investors’ protection. The agency also highlighted the push to improve regulatory and supervisory transparency.
At first, the Central American country bent its Bitcoin rule to accommodate the IMF demand in December. BTC acceptance had to become voluntary for private-sector transactions rather than mandatory. Bukele may have weighed the country’s options and possibly discovered that it would lose out on a potential boom in the crypto market should El Salvador listen to the IMF.
“This all stops in April. stops in June. This all stops in December. No, it’s not stopping,” Bukele wrote on X.
El Salvador currently has 6,101 BTC in its holding, valued at approximately $530 million based on the market price at the time of this writing.
Bitcoin Price Crash to $87,000
Meanwhile, Bukele’s administration’s plan to continue the Bitcoin acquisition comes when it loses much of its gain. From trading above $109,000 in November 2024, the coin is now trying to maintain support at $86,000. Noteworthy, the price of Bitcoin is now $87,756, following a 4.38% increase within the last 24 hours.
Bitcoin has lost value this past week, but analysts recognize the dip as part of a general market trend. Bitcoin’s decline was linked to the global economy, which has been affected by stricter monetary policies and a reduction in the money supply. Bitcoin’s lack of sustained bullish catalysts was equally highlighted as a factor. This situation has made it prone to short-term downward pressure.
Investors are always going to tilt towards more stable options when making investments. The presence of global uncertainties makes the situation more severe. Beyond the present price dip, Bitcoin’s resilience will likely be tested further in the coming months.
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