El Salvador expanded its bitcoin reserve on Monday after acquiring 1,090 BTC during a market dip that pushed the price of Bitcoin below $90,000. The addition raised the country’s reported holdings to 7,474 BTC, worth about $676 million at the time of disclosure. The purchase occurred at 6:01 p.m. Eastern time as short-term selling increased across the market. The update came from the nation’s Bitcoin Office, and President Nayib Bukele later shared a screenshot of the transaction on his X account.
The latest purchase marked the largest single-day addition since the government adopted Bitcoin as legal tender in 2021. El Salvador has added 1 BTC daily since late 2022. Officials also tend to increase holdings during steep price declines.
The announcement followed a familiar pattern of accumulation during periods of market stress. The transaction also occurred during Bitcoin’s lowest level since April. The country’s earlier legal-tender decision positioned Bitcoin within national economic planning.
Only two countries have adopted Bitcoin as legal tender so far. The Central African Republic followed after El Salvador’s 2021 move. Both governments maintain crypto-focused programs linked to their long-term economic strategies.
Yet growing curiosity now surrounds one central question: Did Monday’s 1,090 BTC come from new market purchases or internal wallet transfers?
The International Monetary Fund has raised concerns over new bitcoin purchases by public entities under a $1.4 billion loan agreement. The loan requires voluntary bitcoin payment acceptance and reduced government involvement in the Chivo wallet program.
IMF officials told Decrypt that earlier reserve increases were transfers rather than market buys. A July report stated that recent changes reflected the consolidation of existing wallets. Senior finance officials also said the country had not bought bitcoin since February.
The head of the Bitcoin Office said the nation continues to add BTC despite the IMF terms. The Block requested comment from the office after Monday’s disclosure. The government has not clarified whether the 1,090 BTC came from direct market activity or internal movement.
President Bukele continued to state publicly that Bitcoin accumulation will remain part of national policy. The administration manages the reserve through its internal reporting system.
Blockchain data showed a major capitulation event among short-term holders. Wallets with bitcoin held for less than three months sold 148,000 BTC at a loss. This level of selling marked the largest capitulation since April 2025.
Analysts at Cryptonews linked the pattern to earlier cycle peaks. They said selling may continue as traders react to rapid price swings. The broader market also experienced de-risking across multiple investor segments.
El Salvador’s $100 million purchase brought brief market relief. Market sentiment later shifted as selling pressure expanded beyond short-term holders. Observers now monitor long-term holders to see if they will absorb the discounted supply or wait for lower levels.
President Bukele currently holds a 91% approval rating based on Morning Consult rankings. His administration maintains public support through security reforms and modernization efforts. Comparatively, India’s Prime Minister Narendra Modi holds a 71% approval rating due to strong national development programs.
Read More: El Salvador Opens Bitcoin Banking To Wealthy Investors Through New Law
El Salvador expanded its holdings with a 1,090 BTC purchase as bitcoin fell below $90,000 and short-term holders sold at heavy losses. The update renewed questions about IMF loan terms and the source of the transaction. Readers can continue tracking how future market moves shape national accumulation strategies.