El Salvador swept 1,098 Bitcoins in 7 days! Increased investment of 100 million dollars to buy the dip.

Despite the sluggish market, El Salvador continues to adhere to its Bitcoin accumulation strategy. Data from the Bitcoin Office shows that this Central American country added 1,091 Bitcoins this week, worth nearly 100 million dollars. El Salvador's President Nayib Bukele released a screenshot showing that its total Bitcoin holdings have increased to 7,474.37 coins, worth 688 million dollars.

El Salvador spent 100 million dollars in 7 days, holding over 7474 coins

(Source: Nayib Bukele)

El presidente de El Salvador, Nayib Bukele, publicó en la plataforma X una captura de pantalla que muestra la cantidad de Bitcoin que posee el gobierno del país. En los últimos 7 días, El Salvador compró 1,098.19 Bitcoins, aumentando su tenencia total de Bitcoin a 7,474.37, con un valor de 688 millones de dólares. Según los datos de la oficina de Bitcoin, este país de Centroamérica agregó 1,091 Bitcoins el martes, por un valor cercano a 100 millones de dólares.

This large-scale buying shows that El Salvador's belief in Bitcoin has not been affected at all by market fluctuations. The past 7 days have seen a dramatic adjustment period as Bitcoin's price fell from over $100,000 to around $90,000, leading many institutional and retail investors to take profits or cut losses. However, El Salvador went against the trend, significantly increasing its buying during the price drop, and this “when others are fearful, I am greedy” strategy highlights the country's firm confidence in Bitcoin's long-term value.

Calculating with a funding scale of nearly 100 million USD, El Salvador's average purchase price over the past 7 days is approximately 91,000 USD per coin. Considering the current Bitcoin price of about 90,268 USD, this batch of purchases by El Salvador is already in a slight loss position. However, for sovereign nations adopting a long-term holding strategy, short-term paper losses do not pose a substantial threat. El Salvador's Bitcoin strategy has been clearly positioned from the beginning as a national reserve asset, rather than a short-term trading tool.

El Salvador's total holdings reached 7,474.37 Bitcoins, worth approximately $688 million at current prices. This scale ranks among the top in the world for sovereign nations, second only to the seized Bitcoins held by the U.S. government (about 200,000 coins). For a small economy with a GDP of only about $30 billion, the $688 million in Bitcoin reserves accounts for about 2.3% of its GDP, a figure that is extremely aggressive in global sovereign fund allocations.

Despite the current market volatility, the Salvadoran government continues to increase its holdings by 1 Bitcoin daily. Since President Bukele announced this initiative in November 2022, El Salvador has been consistently purchasing Bitcoin every day. This “dollar-cost averaging” strategy has allowed El Salvador to smooth out its average acquisition cost, avoiding the risk of making large purchases at a single price point.

El Salvador Bitcoin Holdings Core Data

Total holdings: 7,474.37 Bitcoins

Current Market Value: 688 million USD

Bought in the past 7 days: 1,098.19 coins, costing nearly 100 million dollars

Daily Average Purchase Volume: Approximately 157 coins (average over the past 7 days) + fixed daily 1 coin

Sovereign nations buy on dips, signals of a global financial strategy shift

Even during periods of market downturn, El Salvador's cautious Bitcoin purchasing strategy reflects its long-term strategy aimed at enhancing digital reserves. André Dragosch, financial analyst and head of European research at Bitwise, stated that sovereign nations are buying on the dips, suggesting a potential shift in global financial strategies.

This view has recently been validated. Recently, the Czech National Bank (CNB) disclosed its first direct investment in digital assets, purchasing $1 million worth of Bitcoin and other cryptocurrencies. Although the $1 million scale is insignificant compared to El Salvador's $100 million purchase, its symbolic significance is substantial. The Czech central bank is the central bank of an EU member state, and its purchase of Bitcoin signifies that the recognition of Bitcoin as a reserve asset by sovereign nations is spreading from Latin America to Europe.

Stacey Herbert, the director of the Bitcoin office in El Salvador, stated that Bitcoin is “freedom, transparency, and personal empowerment.” “Bitcoin is in stark contrast to government control,” she wrote on X. “President Bukele accepting Bitcoin as legal tender is not to consolidate power, but to distribute power.” This idea shows that El Salvador's Bitcoin strategy is not just a financial investment, but a practice of political philosophy.

The trend of sovereign nations purchasing Bitcoin may trigger a chain reaction. As more and more countries incorporate Bitcoin into their reserve assets, it will drive Bitcoin's transformation from a speculative asset to an internationally recognized store of value. This transformation may take several years, but the proactive actions of El Salvador and the Czech central bank have already provided reference cases for other countries. If more countries follow suit in the future, the demand for Bitcoin will grow exponentially.

As one of the early adopters of Bitcoin, El Salvador has been committed to daily purchases since President Nayib Bukele announced the increase of Bitcoin holdings in November 2022. This long-term strategy demonstrates strong resilience amid short-term market fluctuations. Regardless of whether the price of Bitcoin rises or falls, El Salvador adheres to its dollar-cost averaging plan, a discipline that is difficult for retail investors to achieve.

Bitcoin drops below 90,000, short-term holders panic sell 148,000 coins

On Tuesday, Asian stock markets opened, and the price of Bitcoin plummeted below 90,000 USD. Affected by panic selling, the largest cryptocurrency by market capitalization, Bitcoin, fell by 4.91% in the past 24 hours, reaching 90,708 USD. According to data from CoinMarketCap, as of the time of writing, the trading price of Bitcoin is 90,268 USD. This drop below the psychological barrier of 90,000 has triggered panic in the market, and many technical analysts warn that if this support level cannot be maintained, it may further dive to 80,000 USD.

Short-term holders (addresses holding Bitcoin for less than 3 months) panic-sold 148,000 Bitcoins, incurring losses, marking the largest such event since April 2025. According to Cryptonews analysis, this pattern is similar to past market tops, indicating that sellers may not have stopped their sell-off. Massive loss sales by short-term holders typically signal that market panic has peaked, but it may also mean that weak hands are being washed out, laying the groundwork for a subsequent rebound.

Despite El Salvador's investment of 100 million USD in Bitcoin briefly alleviating market pressure, the systemic de-risking process has overshadowed this positive news. Currently, the market is testing whether long-term investors will absorb these sell-offs at discounted prices. On-chain data shows that long-term holders (addresses holding Bitcoin for more than 155 days) have not sold off significantly; instead, some smart money has increased their positions during the plunge. This divergence in capital flow is a typical sign of bottom formation.

The background of Bitcoin breaking below 90,000 USD is a broader sell-off of risk assets. The three major U.S. stock indices collectively declined, and global risk aversion sentiment heightened, leading investors to withdraw funds from high-risk assets and turn to traditional safe-haven tools like government bonds. In this macro environment, El Salvador's contrarian buying stands out as particularly noteworthy. This is not only a belief in the long-term value of Bitcoin but also a judgment that the current price level is undervalued.

El Salvador's model sparks a sovereign coin buying spree, Czech central bank follows suit

El Salvador's Bitcoin strategy is drawing the attention of sovereign nations worldwide. Recently, the Czech National Bank (CNB) disclosed its first direct investment in digital assets, purchasing Bitcoin and other cryptocurrencies worth $1 million. Although the scale of $1 million is relatively insignificant compared to El Salvador's holdings, its symbolic significance is substantial.

The Czech central bank is the central bank of an EU member state, and its purchase of Bitcoin signifies that the recognition of Bitcoin as a reserve asset by sovereign nations is spreading from Latin America to Europe. This trend may trigger more countries to follow suit. Currently, global foreign exchange reserves are mainly composed of fiat currencies such as the US dollar, euro, and Japanese yen, as well as gold. If Bitcoin is included in the reserve assets of more sovereign nations, it will fundamentally change the global financial landscape.

El caso de éxito de El Salvador proporciona una referencia para otros países. A pesar de que el país enfrentó una fuerte oposición del Fondo Monetario Internacional (FMI) cuando en 2021 adoptó el Bitcoin como moneda de curso legal, el gobierno de Bukele persistió en avanzar con esta política. Hoy en día, las reservas de Bitcoin de El Salvador han alcanzado un valor de 688 millones de dólares, y si el precio de Bitcoin se recupera al histórico pico de 126,000 dólares, el valor de sus reservas superará los 940 millones de dólares, lo que representa más del 3% del PIB del país.

André Dragosch from Bitwise stated that sovereign nations are buying the dip, indicating a potential shift in global financial strategies. The logic behind this shift is that as the dollar depreciates due to massive money printing, central banks around the world are starting to look for alternative reserve assets. The supply of Bitcoin is fixed at 21 million coins, and this absolute scarcity makes it an ideal tool against inflation.