El Salvador Purchases 1,090 BTC Amid Bitcoin Price Drop

El Salvador has increased its Bitcoin holdings by purchasing approximately 1,090 BTC during a significant market sell-off, marking the largest single-day purchase by the country to date. This acquisition raises El Salvador's total Bitcoin reserves to about 7,470–7,500 BTC.

  • The purchase aligns with President Nayib Bukele’s strategy of acquiring "1 BTC per day," a policy introduced in November 2022.
  • This move coincides with Bitcoin's price dropping below $90,000 for the first time in seven months amidst global market volatility.
  • The Spot-ETF outflows have increased, and the Fear & Greed Index indicates "extreme fear" in the market.

Bitcoin Price Drops Below $90K

Regulatory and Strategic Context

  • Under a $1.4B IMF program, El Salvador committed to limiting public-sector Bitcoin exposure while maintaining strategic reserves within agreed terms.
  • The government is actively engaging internationally on digital asset policies, including discussions with U.S. political figures.
  • El Salvador also bolsters its reserves through Bitcoin mining, having produced 474 BTC using geothermal energy since 2021.