El Salvador increased its strategic Bitcoin reserve to 7,687 BTC, a holding now worth over $510 million, as part of President Nayib Bukele’s ongoing “buying the dip, every day” policy.
Daily Dollar‑Cost Averaging Strategy
The government has pursued a disciplined approach that resembles dollar‑cost averaging at the sovereign level, acquiring roughly one Bitcoin each day regardless of short‑term market swings. Between January and April, officials added more than 1,600 BTC, even as the cryptocurrency’s price hovered near $66,000. This incremental method has allowed the nation to expand its crypto portfolio without attempting to time market fluctuations.
IMF Negotiations and Policy Tension
Under a $1.4 billion financing pact, the International Monetary Fund has urged El Salvador’s public sector to suspend further Bitcoin purchases, questioning the compatibility of the acquisitions with the agreement’s terms. Despite the IMF’s pressure, the country continues to buy Bitcoin, reinforcing its position among the world’s largest sovereign crypto holders. Investors watch the clash closely, as it highlights the broader debate over blockchain adoption and fiscal policy in emerging economies.