El Salvador Records Its Largest Bitcoin Addition Amid Questions Over IMF Loan Restrictions

• El Salvador’s 1,090 BTC increase conflicts with IMF rules restricting new purchases.
• Officials dispute whether the inflow reflects market buying or wallet consolidation.
• The addition came as Bitcoin fell 5.27% and trading volume surged amid broader volatility.

El Salvador reported its biggest single-day growth in Bitcoin reserves on Monday, adding 1,090 BTC to government-controlled wallets at a moment when the broader crypto market was undergoing a price pullback.

The disclosure, shared by the country’s Bitcoin Office, brought total holdings to 7,474 BTC and took place as the asset traded below $90,000. The acquisition has renewed ongoing questions about how these inflows align with the terms of the government’s loan agreement with the International Monetary Fund, which restricts new bitcoin purchases by the public sector.

According to the Bitcoin Office, the latest increase occurred at 6:01 p.m. ET and was valued at roughly $100 million at the time of the transfer. The move amounts to the country’s largest recorded daily increase in its Bitcoin reserves. Officials highlighted that the addition coincided with a short-lived price decline to multi-month lows, a pattern consistent with prior periods when the administration increased Bitcoin holdings during market weakness.

President Nayib Bukele posted a screenshot of the transaction on X shortly after the transfer. His administration has maintained since late 2022 that El Salvador acquires 1 BTC per day, though Monday’s activity far exceeded the daily tally typically referenced in official communications.

IMF Deal Raises Uncertainty Over Source of BTC

The timing has revived scrutiny over whether the recorded inflow reflects an open-market purchase or a consolidation of assets already controlled by state entities. El Salvador’s $1.4 billion agreement with the IMF explicitly requires the public sector to halt new Bitcoin acquisitions. In July, two senior finance officials stated that the country had not purchased Bitcoin since February, a position that appears inconsistent with statements from the president and the Bitcoin Office.

An IMF report offered another explanation, noting that changes in reported Bitcoin holdings may represent transfers between wallets rather than net-new buying activity. Stacy Herbert, the head of the Bitcoin Office, has argued publicly that accumulation continues regardless of the agreement’s terms.

Market Conditions Shift as Bitcoin Extends Losses

The reported inflow occurred as Bitcoin posted a 5.27% decline over the previous 24 hours, dropping to approximately $90,296. Market capitalization fell to $1.8 trillion, while fully diluted valuation slipped to $1.89 trillion. 

Source: CoinMarketCap

Trading volume, however, climbed 37.71% to $102.93 billion, showing higher sales as traders adjusted to the decline. Analysts noted that volume-to-market-cap reached 5.69%, reflecting brisk activity during the downturn.