Following Thursday’s sharp crypto market crash, the Central American country El Salvador went bitcoin (BTC) shopping again. With BTC plummeting to $96,000, the government acquired about 11 BTC for $1 million. According to reports, since El Salvador adopted a strategic bitcoin reserve, it has acquired approximately 6000 BTC and is looking for opportunities to purchase more crypto to boost its stash.
🇸🇻We just transferred over a million dollars worth of Bitcoin to our Strategic Bitcoin Reserve. pic.twitter.com/4ZrxGw9Od0
— The Bitcoin Office (@bitcoinofficesv) December 20, 2024
$1 Million Purchase
While many crypto investors cashed out their profits and others sold off their holdings in fear of the price crash, El Salvador seized the opportunity to purchase more, solidifying its position as the world’s first country to adopt BTC as its primary reserve asset.
The International Monetary Fund (IMF) criticized the adoption of a bitcoin reserve in 2021, stating that the volatility of the crypto market poses a risk to the economy. Recently, the IMF agreed to contribute $1.4 billion over the next 40 months to help reduce the country’s debt-to-GDP percentage. In return, the government will improve the country’s fiscal policies, including the BTC policy.
Notably, El Salvador has not opted to stop purchasing crypto. The country announced on Thursday that it will continue to buy BTC and expand its national Bitcoin portfolio, displaying commitment and confidence in the crypto despite wavering market conditions.
El Salvador Reap Bitcoin Profits
Notably, after concluding its last purchase, the country now holds 5,980 BTC, valued at over $568 million at the bitcoin spot price of $95,000 at press time.
According to famous American broadcaster Max Keiser, El Salvador has achieved solid economic stability with a 1% inflation rate and is living America’s dream through its bitcoin reserve strategy.
Other countries, including the United States, have indicated interest in adopting a strategic bitcoin reserve. Throughout his campaign, U.S. President-elect Donald Trump pronounced support for crypto and plans to make America the world’s capital of bitcoin if he steps in next month. He won the support of the crypto community as they look forward to a crypto-friendly America under his administration.
Meanwhile, many investors in the U.S. have gained access to crypto via the spot Bitcoin and Ether exchange-traded funds (ETF) approved earlier this year.
