El Salvador has accumulated an additional 20 BTC within a week, raising its total to 6,068 BTC. Recent purchases are part of a shift toward a more aggressive Bitcoin accumulation strategy, driven by financial negotiations with the IMF. Other nations are considering adopting similar Bitcoin reserves strategies, following El Salvador’s lead.
El Salvador has ramped up its Bitcoin acquisition efforts, amassing an additional 20 BTC within the past week. The latest purchases include two significant acquisitions on February 4: 11 BTC acquired for approximately $1.1 million at an average price of $101,816 per BTC, and 1 BTC bought for $99,114 shortly after. Following these transactions, El Salvador’s total Bitcoin reserves reached 6,068 BTC, valued over $592 million.
In the wake of market fluctuations, including Bitcoin dipping to $98,361 on February 4, the country has adopted a more rapid accumulation approach, purchasing 60 BTC in the last month alone. This change signifies a departure from its initial ‘1 Bitcoin a day’ strategy established in 2022 when President Nayib Bukele broke ground by officially designating Bitcoin as legal tender. Previously, the nation acquired 11 BTC on both January 9 and 20.
The acceleration in Bitcoin purchasing comes after El Salvador negotiated a $1.4 billion loan with the International Monetary Fund (IMF), which imposed certain conditions regarding its Bitcoin policies. As part of this agreement, El Salvador has made Bitcoin transactions optional and plans to phase out the state-operated Chivo wallet. Other nations, observing El Salvador’s approach, are considering similar strategies to develop their Bitcoin reserves, with the United States leading the charge, alongside countries like Brazil, the Czech Republic, and Poland.
El Salvador’s Bitcoin journey began in 2022 when it became the first country to officially recognize Bitcoin as legal tender. The initiative was bolstered by President Nayib Bukele’s vision to integrate cryptocurrency into the national economy. Initially, the accumulation strategy was modest, aiming for one Bitcoin a day, but recent financial negotiations have caused a shift towards more aggressive buying, prompting discussions among other nations about similar potential movements in Bitcoin investments.
El Salvador continues to deepen its investment in Bitcoin, recently purchasing an additional 20 BTC and accumulating a total of 6,068 BTC. This change in strategy reflects the need to adapt to market volatility and international financial agreements, signifying a pivotal shift in how nations may manage cryptocurrency as part of their economic policies. As more countries consider similar strategies, El Salvador sets a notable precedent in the cryptocurrency landscape.
Original Source: crypto.news
