BITCOIN ON SALE: EL SALVADOR PAUSES, THEN BUYS THE DIP

El Salvador's brief pause in Bitcoin purchases raised public concern, but the country proved its commitment by strategically buying the dip, reinforcing its long-term trust in BTC.

After a brief one-week pause, El Salvador has resumed its Bitcoin acquisition strategy, alleviating public concerns that the country might be shifting away from its pro-Bitcoin stance. The Central American nation, which has been purchasing Bitcoin daily since November 2022, paused its routine acquisitions on February 18, sparking speculation about the reasons behind the decision. However, the government has now proven its commitment to Bitcoin remains strong—grabbing the opportunity to buy the dip.

El Salvador Buys 7 BTC After Pause, Strengthening Reserves

According to Arkham Intelligence data, El Salvador purchased 7 Bitcoin worth approximately $661,000, bringing its total holdings to 6,088 BTC, valued at around $558 million at current prices. The country’s decision to halt daily purchases had raised concerns among Bitcoin supporters, with some fearing that its recent agreement with the International Monetary Fund (IMF) might have pressured the government into scaling back its Bitcoin strategy.

A vibrant and colorful landscape of El Salvador featuring lush green mountains, a beautiful coastline, and a charming colonial town with brightly painted buildings. A glowing Bitcoin symbol shines in the sky, casting a golden light over the scenery, symbolizing the country's commitment to cryptocurrency.

Contrary to speculation, the pause appears to have been a strategic move rather than a policy shift. El Salvador’s latest purchase came amid a Bitcoin price dip, triggered by market turbulence following former US President Donald Trump’s tariff statement. The sharp correction led to over $950 million in leveraged liquidations across crypto exchanges, briefly driving Bitcoin’s price below $92,000.

Buying the Dip: A Strategic Play, Not a Retreat

El Salvador’s Bitcoin strategy has always been about long-term value accumulation rather than short-term speculation. While the pause in daily purchases initially sparked concern, the recent acquisition shows that the country remains confident in Bitcoin’s future. Rather than buying Bitcoin at any price, El Salvador appears to take advantage of market corrections to maximise its holdings at lower costs.

This is not the first time El Salvador has made opportunistic Bitcoin purchases. In December 2024, following its IMF financing deal, the country added $1 million worth of Bitcoin to its reserves in a single transaction. On February 4, it purchased 11 Bitcoin, valued at over $1 million, demonstrating its strategic approach.

A vibrant and colorful depiction of a glowing Bitcoin symbol, radiating bright golden and neon hues against a dynamic background of vivid blues, purples, and oranges, symbolizing innovation and financial revolution.

Bitcoin Trust Remains Strong Despite IMF Agreement

The IMF’s 40-month Extended Fund Facility agreement, which will provide over $3.5 billion in financial support, required El Salvador to modify some Bitcoin policies—such as making Bitcoin acceptance voluntary for private-sector businesses. However, this has not deterred the nation’s long-term Bitcoin vision.

El Salvador’s latest move reassures Bitcoin advocates that the country remains committed to its pioneering digital asset strategy, proving once again that Bitcoin is a long-term financial asset rather than just another speculative investment.

Stay informed,
Rodcas Consulting Group