El Salvador buys Bitcoin dip, adding 5 BTC amid price plunge to $83,000

Key Takeaways

• El Salvador purchased 5 Bitcoin during a price drop to $83,000, increasing its total holdings to 6,100 BTC.
• The purchase follows IMF's $1.4 billion loan to El Salvador, which calls for reduced government involvement in Bitcoin.

El Salvador acquired 5 Bitcoin worth approximately $415,000 on Monday night ET, as the leading digital asset experienced a sharp decline to $83,000, according to Arkham Intelligence data .

The Central American nation’s Bitcoin holdings now total 6,100 Bitcoin, with a current value of roughly $510 million. El Salvador has maintained a strategy of purchasing one Bitcoin daily since November 2022.

The purchase comes despite the International Monetary Fund’s recent $1.4 billion loan approval on Feb. 27, which included conditions requiring El Salvador to reduce state involvement in crypto activities, including government Bitcoin purchases and transactions.

El Salvador has made adjustments to comply with IMF requirements by making Bitcoin acceptance voluntary and reducing its involvement in Bitcoin-related initiatives.

The IMF arrangement focuses on improving public finances and governance while managing risks associated with El Salvador’s Bitcoin program.

Bitcoin traded at approximately $83,700 at press time, showing an 8% decline over the past 24 hours, according to CoinGecko data.

Apart from Bitcoin, El Salvador’s President, Nayib Bukele, also focuses on artificial intelligence and tech advancements.

President Bukele recently met with a16z’s co-founders , Ben Horowitz and Marc Andreessen, to discuss technology and AI investment opportunities.

The discussions centered on establishing El Salvador as a regional tech hub, leveraging policy changes such as a 0% tax rate for tech industries and creating a supportive regulatory framework for AI. They also considered how technological advancements and regional investments could turn El Salvador into a key destination for technology innovators.