El Salvador just made a bold move that’s sparking heated debates worldwide: Did the country really just invest $100 million in Bitcoin? This question isn’t just about numbers—it’s about a nation’s gamble on a volatile asset and the global scrutiny it’s facing. But here’s where it gets controversial: while the International Monetary Fund (IMF) claims these aren’t new purchases but internal transfers, El Salvador’s government insists it’s still actively buying Bitcoin. So, who’s telling the truth? Let’s dive in.
On Monday, President Nayib Bukele took to X (formerly Twitter) to celebrate a significant milestone: El Salvador’s Bitcoin holdings surged by 1,000 BTC, valued at approximately $100 million, even as Bitcoin’s price lingered near a six-month low. With a triumphant “Hooah!” Bukele shared a screenshot of the country’s official Bitcoin stockpile, which had jumped by 17% in just one day. This marks the largest single-day increase since El Salvador began its Bitcoin journey.
According to the country’s Bitcoin Office dashboard, El Salvador now holds around 7,500 BTC, worth roughly $698 million. But this isn’t the first time the nation’s Bitcoin strategy has raised eyebrows. In September, the IMF publicly questioned whether El Salvador was actually buying more Bitcoin or simply shuffling existing holdings. A Salvadoran government spokesperson quickly fired back, asserting that Bukele’s administration has continued purchasing Bitcoin despite agreeing to scale back its crypto initiatives as part of a $1.4 billion IMF loan deal.
And this is the part most people miss: As part of that agreement, El Salvador promised to make Bitcoin payments voluntary and reduce its involvement in the Chivo digital wallet program, which had incentivized users with a $30 sign-up bonus. Yet, the country’s Bitcoin holdings have grown dramatically since it started publicly disclosing them in 2024, with the latest 1,000 BTC addition standing out as an unusually large purchase.
To put this in perspective, in 2022, Bukele pledged to buy one Bitcoin per day when its price was around $16,700, following the collapse of the FTX crypto exchange. Fast forward to today, and Bitcoin’s price has dropped 27% from its all-time high of $126,000 last month. Despite this volatility, traders on prediction market Myriad are split between ‘Greed’ and ‘Fear,’ reflecting the market’s uncertainty. (Disclaimer: Myriad Markets is a product of Decrypt’s parent company, DASTAN.)
At its peak, El Salvador’s Bitcoin holdings were worth nearly $800 million, but they’ve since lost almost $200 million in value, according to CoinGecko. Last month, when Bukele shared a screenshot of the country’s holdings, it showed an unrealized profit of around $475 million. However, that metric has mysteriously disappeared from the Bitcoin Office’s dashboard, leaving many to wonder why.
Here’s the burning question: Is El Salvador’s Bitcoin bet a visionary move or a risky gamble? The IMF clearly has its doubts, but Bukele remains undeterred. What do you think? Is this a smart investment strategy, or is El Salvador playing with fire? Let us know in the comments—this debate is far from over.
