- El Salvador plans to buy 20,000 Bitcoin, adding to its 5,994 BTC holdings.
- The IMF approves a $1.4B loan with new terms on Bitcoin’s role in tax payments.
- Bitcoin buying may impact crypto markets as alt-season looms post-ETH bottom.
El Salvador has announced plans to purchase 20,000 additional Bitcoin. This would reinforce its position as the world’s first country to adopt the cryptocurrency as legal tender.
Max Keiser, senior Bitcoin advisor to President Nayib Bukele, disclosed that the country has stepped up its daily Bitcoin purchases. It is adding 11 Bitcoin worth $1.06 million in its latest acquisition.
The Central American nation now holds 5,994 Bitcoin, valued at over $580 million at current market prices.
Expanding Bitcoin Holdings Amid IMF Agreement
El Salvador’s Bitcoin office director, Stacy Herbert, confirmed on social platform X that the government plans to add more Bitcoin to its strategic reserves.
The latest purchase of 11 Bitcoin, worth $1.06 million, marks the start of an ambitious plan to acquire 20,000 additional coins.
The daily purchase strategy represents a shift from the country’s previous buying patterns. Under President Bukele’s direction, El Salvador began buying Bitcoin in September 2021, when it first declared the cryptocurrency legal tender.
The current holdings show a profit on paper. The country bought most of its Bitcoin at lower prices during market downturns.
The scale of El Salvador’s planned 20,000 Bitcoin acquisition would make it one of the largest institutional holders of the cryptocurrency.
This target, revealed by Max Keiser, would put the country’s total holdings at approximately 26,000 BTC.
At current market prices near $97,000 per Bitcoin, this position would be worth over $2.5 billion.
IMF Agreement and Bitcoin Policy
The IMF approved a $1.4 billion loan deal with El Salvador on Wednesday. This sets new terms for the country’s Bitcoin policies.
Under the agreement, El Salvador must limit tax payments to U.S. dollars only, marking a partial shift from its previous all-encompassing Bitcoin adoption.
IMF spokesperson Julie Kozack stated that upcoming legal changes would make Bitcoin acceptance optional for private businesses in El Salvador.
Despite these new conditions, El Salvador’s government quickly moved to assert its independence on Bitcoin policy.
Stacy Herbert, the country’s Bitcoin office director, posted a clear message that Bitcoin would stay as legal tender.
The government’s prompt announcement of new Bitcoin purchases appears timed to show its commitment to cryptocurrency adoption, regardless of external pressures.
The IMF’s recent stance shows a softening of its previous concerns about El Salvador’s Bitcoin experiment.
The organization noted that many of its earlier warnings about financial and legal risks “have not materialized.”
This acknowledgment comes as El Salvador continues to develop its role as a Bitcoin hub, recently hosting an “Adopting Bitcoin” conference that drew international attention.
Market Analysis and Bitcoin-Ethereum Cycle
Experienced crypto traders are watching the relationship between Bitcoin and Ethereum as key market indicators begin to align.
Because Bitcoin CEO points to historical patterns showing that Ethereum (ETH) typically reaches its lowest point against Bitcoin (BTC) in the late fourth quarter of Bitcoin halving years.
This cycle has proven reliable in previous market phases, suggesting a potential shift in market dynamics as we approach 2025.
The timing becomes particularly relevant given El Salvador’s Bitcoin accumulation plans. Historical data shows that after ETH bottoms against BTC, the cryptocurrency market often enters what traders call “alt-season,” a period when altcoins outperform Bitcoin.
This pattern could amplify the impact of El Salvador’s purchases on the broader crypto market, as increased Bitcoin buying typically leads to rising prices across the entire cryptocurrency sector.
Source: thecoinrepublic.com
