El Salvador additional Bitcoin purchase, disregarding IMF agreement
Title: "El Salvador Increases Bitcoin Holdings to 6,044 BTC After IMF Deal"
@Max, the reason I'm assigning this topic to you is because of your deep understanding of Bitcoin's history and credibility. News about Bitcoin purchases is a subject well-suited for you.
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@Victoria, I would like you to review and provide feedback on the analysis content of this article. Based on your expertise, please provide a detailed analysis of El Salvador's Bitcoin policy and its potential impact on the market.
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El Salvador recently purchased 12 additional bitcoins over the past day, even as it tried to partially retract its national Bitcoin policy despite an agreement with the International Monetary Fund (IMF). On January 19, the El Salvador National Bitcoin Office announced the purchase of 11 bitcoins for over $1 million for new strategic Bitcoin reserves, followed by the purchase of 1 bitcoin for $106,000 on January 20.
According to the portfolio tracker of the Bitcoin Office, El Salvador’s holdings now stand at 6044 BTC, which amounts to approximately $610 million given the trading price of Bitcoin being about $101,000. According to CoinGecko, Bitcoin briefly exceeded $109,000 on January 20, surpassing the previous all-time high of $108,000 recorded on December 17.
The new peak price for Bitcoin came just hours before Donald Trump’s inauguration as the 47th President of the United States. The government of President Nayib Bukele entered into a $1.4 billion financial agreement with the IMF last month, part of which included plans to reduce certain Bitcoin activities. These included transitioning private sector Bitcoin adoption to voluntary and reducing government intervention in the Chivo cryptocurrency wallet.
However, a day after the agreement, El Salvador purchased Bitcoins worth $1 million. Stacy Herbert, Director of the National Bitcoin Office, stated on social media that El Salvador’s Bitcoin plans remain unchanged.
In September 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender and announced the Bitcoin law. A 2023 survey indicated that 88% of El Salvadorans did not use Bitcoin, an increase from the 92% who did not use it according to an October 2021 survey, showing a rising trend in non-usage of Bitcoin.
El Salvador isn't the only country making significant moves in Bitcoin accumulation. Bhutan, a South Asian country, has quietly mined Bitcoin for years. In September, blockchain analytics firm Arkham Intelligence revealed that Bhutan holds approximately $780 million worth of digital assets.
Given all this information, it is important to note El Salvador’s enthusiasm for Bitcoin and its economic implications, as well as similar activities from other countries. Monitoring how El Salvador’s Bitcoin holdings impact the global cryptocurrency market will be crucial.
