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El Salvador Continues Aggressive Bitcoin Accumulation Strategy
El Salvador has continued to accelerate its Bitcoin buying spree, adding over 20 BTC to its reserves in the past seven days. The country’s Bitcoin Office reported that 12 BTC was acquired on February 4, across two separate transactions. El Salvador purchased 11 BTC for approximately $1.1 million at an average price of $101,816 per BTC, and later bought 1 BTC for $99,114.
These latest purchases bring El Salvador’s total Bitcoin holdings to 6,068 BTC, valued at over $592 million. The country has been consistently accumulating Bitcoin, adding 60 BTC to its reserves over the past month alone.
Market Impact
El Salvador’s Bitcoin accumulation comes as the cryptocurrency struggled to climb back above $100,000, following market jitters from recent global events. Bitcoin’s price dropped to a low of $98,361 on February 4.
Accumulation Strategy
El Salvador initially began accumulating Bitcoin under its “1 Bitcoin a day” program, introduced in 2022 after officially recognizing Bitcoin as a legal tender. However, the country has since deviated from this pattern and adopted a more aggressive accumulation strategy, purchasing larger chunks of Bitcoin at a faster pace.
This shift in strategy came after El Salvador negotiated a $1.4 billion loan with the International Monetary Fund (IMF), which included conditions to scale back some of its Bitcoin-related policies. As a result, El Salvador has made Bitcoin acceptance optional and agreed to wind down the state-backed Chivo wallet.
Global Impact
El Salvador’s Bitcoin strategy is being closely watched by other nations, with some exploring the idea of building their own reserves. The United States, Brazil, Czech Republic, and Poland are among the countries considering this approach.
As more countries consider accumulating Bitcoin, it’s essential for investors to stay informed about the latest developments in the cryptocurrency market.
For more news on Bitcoin and the global cryptocurrency market, visit Global Crypto News.
Tips for Investors
- Stay up-to-date with the latest Bitcoin price movements and market trends.
- Consider the potential impact of global events on the cryptocurrency market.
- Research and understand the different investment strategies and approaches to accumulating Bitcoin.
