El Salvador has added $100 million worth of Bitcoin to its national reserves over the past week, purchasing 1,098 BTC amid declining market conditions. The Central American nation now holds 7,474 Bitcoin valued at approximately $688 million, according to the country’s Bitcoin office.
President Nayib Bukele shared details of the recent acquisition on social media, reaffirming his administration’s commitment to building cryptocurrency reserves. The government has implemented a daily purchasing strategy designed to accumulate digital assets gradually while minimizing exposure to price volatility.
Strategic Accumulation Through Daily Purchases
El Salvador adds one Bitcoin to its reserves each day as part of its long-term investment strategy. This approach allows the government to reduce its average acquisition cost through consistent buying during market downturns.
Stacy Herbert, director of El Salvador’s Bitcoin Office, explained that the initiative aims to provide citizens with greater financial autonomy. The government wants to reduce dependence on traditional banking systems and encourage cryptocurrency adoption among its population.
Most Salvadorans currently use the U.S. dollar for everyday transactions. The administration hopes daily Bitcoin purchases will demonstrate the viability of digital currency as an alternative to conventional money.
El Salvador became the first country to adopt Bitcoin as legal tender in September 2021. However, public acceptance has progressed slowly. Many citizens remain hesitant about cryptocurrency use despite government incentives and educational programs.
The International Monetary Fund has expressed concern about El Salvador’s Bitcoin holdings. The organization warned about potential financial risks associated with maintaining large cryptocurrency reserves. Nevertheless, President Bukele has dismissed these warnings and continued the accumulation strategy.
Government Stays Steady While Market Declines
Bitcoin prices fell below $90,000 this week, dropping nearly 5% in a single trading session. The decline triggered widespread selling among retail investors who had entered the market within recent months.
At the time of writing, Bitcoin is trading at $90,635, suggesting a 5.21% decline in the last 24 hours.
Market data shows approximately 148,000 BTC changed hands during the selloff, marking the largest short-term transfer since April 2025. Many inexperienced investors sold their holdings at substantial losses to avoid further depreciation.
El Salvador maintained its purchasing schedule throughout the downturn. The government’s steady approach contrasts sharply with the panic-driven decisions of individual traders.
The Czech National Bank recently announced its first Bitcoin acquisition, signaling growing institutional interest in digital assets. However, government purchases alone cannot prevent retail investor panic from affecting market prices.
El Salvador currently ranks as the fifth-largest government holder of Bitcoin globally. The United States, China, the United Kingdom, and the European Union hold larger reserves. Despite having a relatively small economy, El Salvador has distinguished itself through aggressive cryptocurrency accumulation.
Source: https://coinpaper.com/12429/el-salvador-just-spent-100-m-on-bitcoin-while-everyone-else-was-panic-selling
