El Salvador Drops $100 Million on Bitcoin as Market Crashes
John: Hey everyone, I’m John, a veteran writer for Blockchain Bulletin, where I break down the latest in Web3, crypto, and blockchain in simple terms. Today, we’re diving into El Salvador’s bold move to buy $100 million worth of Bitcoin amid a market dip—it’s a fascinating example of a country treating crypto like a national asset. For readers who want a full step-by-step guide on getting started with crypto, you can also check this exchange guide.
Lila: Hi, I’m Lila, John’s curious assistant always eager to learn more about crypto. John, what’s the big deal with El Salvador buying Bitcoin during a crash—doesn’t that seem risky for a whole country?
Background on El Salvador’s Bitcoin Journey
John: Great question, Lila. El Salvador made history on 2021-09-07 when it became the first country to adopt Bitcoin as legal tender, alongside the US dollar. This was spearheaded by President Nayib Bukele, who saw it as a way to boost financial inclusion and attract investment.
Lila: Legal tender? Like, you can buy groceries with Bitcoin there?
John: Exactly—businesses must accept it, though many still prefer dollars. In the past, they’ve been steadily accumulating Bitcoin, buying during dips to build reserves. As of now, this strategy has turned their holdings into a significant national asset (and hey, it’s like stocking up on sale items before prices rebound—practical, right?).
The Recent Purchase Details
John: Let’s get into the latest news. On 2025-11-18, El Salvador purchased about 1,090 Bitcoin for roughly $100 million, as Bitcoin’s price dipped below $92,000. This bumped their total reserves to around 7,474 BTC, according to official announcements from President Bukele.
Lila: Whoa, that’s a lot—how do they even afford that?
John: They use government funds and have a daily purchase plan of 1 BTC, but this was a bigger “buy the dip” move. It’s all transparent; Bukele shared it on social media, emphasizing long-term confidence in Bitcoin.
Market Context and Crash
John: To put it in perspective, Bitcoin hit highs above $100,000 earlier in 2025, but on 2025-11-18, it crashed below $90,000 amid broader market volatility. Retail investors panicked and sold, but El Salvador saw it as an opportunity, much like they’ve done in past dips.
Lila: Crash sounds scary—what caused it?
John: Factors included regulatory news and economic shifts, but it’s part of crypto’s ups and downs. Think of it like a rollercoaster—thrilling, but you hold on for the ride. Verified reports from sources like Cointelegraph confirm the price fell sharply, wiping out some yearly gains temporarily.
Implications and IMF Scrutiny
John: This purchase isn’t without controversy. The International Monetary Fund (IMF) has scrutinized El Salvador’s Bitcoin strategy, especially after a 2025 loan agreement that initially restricted new buys. However, they’ve found ways to continue, focusing on private-sector adoption.
Lila: Why does the IMF care?
John: They worry about fiscal risks, like volatility affecting national finances. As of now, El Salvador’s holdings are worth over $685 million at current prices, showing potential upsides, but it’s a bold bet on crypto’s future—no light humor here, as regulatory topics are serious.
Use Cases and Benefits for El Salvador
John: Beyond reserves, Bitcoin helps with remittances—Salvadorans abroad send money home cheaper via crypto. It’s also attracting tourists and tech firms, boosting the economy.
Lila: Any real examples?
John: Sure, here’s a quick list of key use cases:
- Remittances: Cutting fees from 6% traditional to near-zero with Bitcoin.
- Tourism: “Bitcoin Beach” areas draw crypto enthusiasts.
- Investments: Government profits from price rises fund projects like schools.
- Inclusion: Banking the unbanked, as 70% of Salvadorans lacked accounts pre-2021.
John: These show how crypto can be practical (and a bit like giving everyone a digital wallet—empowering, huh?).
Risks and Safeguards
John: Of course, there are risks. Bitcoin’s volatility means values can drop fast, as seen in this crash. El Salvador mitigates this by holding long-term and diversifying strategies.
Lila: How do they protect against that?
John: They use cold storage for security and promote education. Remember, this is for a country, so they balance it with dollar reserves—no financial advice, but it’s a lesson in risk management.
Looking Ahead
John: Looking ahead, El Salvador plans to continue daily buys and might issue Bitcoin bonds if conditions allow. With Bitcoin’s potential recovery, their stack could grow in value by 2026 or beyond.
Lila: Will other countries follow?
John: Possibly—nations like Bhutan are exploring similar paths. It’s an evolving story, blending innovation with caution.
John: Wrapping up, El Salvador’s $100 million Bitcoin buy during the crash shows real confidence in crypto’s future, turning market fear into opportunity. It’s inspiring for beginners to see a country lead by example, but always research thoroughly. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Totally agree—it’s exciting how Bitcoin is going mainstream, one dip at a time. Stay curious, folks!
This article was created using the original article below and verified real-time sources:
- El Salvador Drops $100 Million on Bitcoin as Market Crashes
- El Salvador Buys the Dip: Why a $100 Million BTC Buy Matters
- El Salvador buys $100 million worth of Bitcoin during price crash
- El Salvador Buys $100M Of Bitcoin Despite Price Crash
- El Salvador Capitalizes on Price Drop, Acquires 1,100 BTC
- El Salvador Buys The Dip: Adds 1,090 Bitcoin on Top of Daily Purchases