- El Salvador increased its Bitcoin reserve to over 6,091 BTC as it continued buying during market dips.
- The IMF approved a $1.4 billion loan with conditions that limit Bitcoin use and require tax payments in U.S. dollars.
- New U.S. tariffs caused over $950 million in liquidations and contributed to Bitcoin’s recent price decline.
El Salvador resumed daily Bitcoin purchases and added one BTC to its reserve yesterday. This brings the country’s total holdings to over 6,091 BTC as the government continues to buy Bitcoin to reinforce its long-term strategy.
Taking Advantage of the Bitcoin Dip
The country bought Bitcoin at a lower price during a market dip. As of February 28 2025 Bitcoin trades at $80,452.44 and it is down 5% for the day. The 24-hour trading volume stands at $63.99 billion and it reflects a 3.64% decrease. Bitcoin remains 25% below its all-time high as it undergoes the ongoing market correction.
The recent market volatility is being caused by global economic factors. U.S. President Trump’s new tariffs have impacted financial markets and cryptocurrencies. These tariffs triggered over $950 million in leveraged position liquidations and consequently Bitcoin’s price dropped and affected overall market stability.
IMF Loan and Restrictions on Bitcoin Use
The IMF approved a $1.4 billion extended arrangement which aims to strengthen the economic position of the country. This 40-month program includes an immediate disbursement of $113 million which will help the country manage its public finances and strengthen external and financial buffers.
However the agreement imposes restrictions on Bitcoin use. Bitcoin acceptance in the private sector remains voluntary and all tax payments must be made in U.S. dollars. The government will also reduce its involvement in the public crypto e-wallet and regulations around digital assets will be strengthened to ensure compliance with international financial guidelines.
El Salvador continues to accumulate Bitcoin while managing its international financial obligations. The IMF conditions limit Bitcoin’ role in the economy but the country remains committed to holding Bitcoin as a national reserve. The latest purchase reflects confidence in Bitcoin’s future value despite short-term market challenges. With Bitcoin holdings exceeding 6,091 BTC El Salvador strengthens its digital asset reserves.
