El Salvador has recently increased its Bitcoin reserves by acquiring a total of 12 Bitcoin within a single day, despite having previously reached a financing agreement with the International Monetary Fund (IMF) to reduce its cryptocurrency initiatives. The National Bitcoin Office of El Salvador announced the purchase of 11 Bitcoin , valued at over $1 million, on January 19, followed by the acquisition of an additional Bitcoin for approximately $106,000 the next day.
With these latest additions, El Salvador’s total Bitcoin holdings have now reached 6,044 BTC, which translates to an estimated market value of nearly $610 million as the cryptocurrency trades around $101,000. On January 20, Bitcoin experienced a momentary price surge, surpassing $109,000, thereby exceeding its previous peak of $108,000 set in December 2022. This spike in Bitcoin ’s value coincided with the inauguration of the new U.S. president.
Despite entering into a $1.4 billion agreement with the IMF last month, which included measures to scale back certain Bitcoin -related activities, El Salvador remains committed to its cryptocurrency strategy. As part of the agreement with the IMF, the country has made private sector adoption of Bitcoin optional and is reducing its involvement with the state-backed Chivo wallet. Nevertheless, the country made its Bitcoin purchases shortly after finalizing the IMF deal, indicating that its plans for Bitcoin investment are unchanged.
Since claiming the title of the first nation to officially adopt Bitcoin as legal tender in September 2021, El Salvador has faced mixed reactions. Recent surveys suggest a growing skepticism among the populace, with a substantial percentage — 92% — reporting that they do not use Bitcoin for transactions, a slight increase from the previous year. El Salvador is not alone in its pursuit of Bitcoin ; Bhutan has also been active in the crypto space, reportedly holding around $780 million in digital assets through its long-standing Bitcoin mining endeavors.
