El Salvador has been a trailblazer in legalizing Bitcoin, but recent developments indicate a shift in its stance. According to a Reuters report, the nation's congress has swiftly approved an amendment to its Bitcoin laws, making cryptocurrency acceptance voluntary rather than mandatory. This move aligns with the conditions set by a major international lender to finalize a crucial financial agreement.
Key Highlights of the Amendment
✅ IMF Loan Agreement: In December 2024, El Salvador secured a $1.4 billion loan deal with the International Monetary Fund (IMF). One of the IMF's requirements was that the government scale back its involvement in Bitcoin and make its use optional for private businesses.
✅ Legislative Approval: The amendment was overwhelmingly approved with 55 votes in favor and only 2 against. Previously, businesses were legally required to accept Bitcoin as payment.
✅ Government Justification: Lawmaker Elisa Rosales emphasized that this change ensures Bitcoin's long-term viability as legal tender while improving its practical adoption.
El Salvador’s Bitcoin Holdings and Continued Investment
Despite the IMF’s condition to reduce exposure to cryptocurrency, El Salvador remains invested in Bitcoin:
🔹 On January 21, 2025, The Paypers reported that the country purchased 12 more Bitcoins.
🔹 As of the latest update, El Salvador holds 6,049.18 BTC, with a +4 BTC change in the past 7 days.
🔹 The total value of these holdings stands at $636.26 million at current market prices.
Will El Salvador Change Its Bitcoin Strategy?
While the IMF agreement suggests a possible shift in El Salvador’s Bitcoin strategy, the government’s actions indicate otherwise:
⚡ Experts believe the deal could lead to a more cautious approach toward Bitcoin investment.
⚡ However, the nation’s continued Bitcoin purchases suggest it still sees potential in the asset.
⚡ Critics argue that allocating national funds for cryptocurrency carries significant risks due to Bitcoin’s volatility.
Bitcoin’s Growth and Market Trends
Bitcoin’s performance has been remarkable since its inception:
📈 Growth Since Launch: BTC has surged by 169,766,956.46% since its debut.
📈 Current Price: Trading at $104,946 with a $2.08 trillion market capitalization.
📈 24-Hour Trading Volume: $52.18 billion, reflecting strong investor activity.
With new leadership in the United States, the adoption and popularity of cryptocurrencies—particularly Bitcoin—are expected to rise, potentially influencing global markets.
Crypto Market Overview
As of the latest update, the overall cryptocurrency market remains strong:
📊 Total Market Cap: $3.55 trillion, up 1.93% intraday.
📊 24-Hour Trading Volume: $129.89 billion, an increase of 15.04%.
📊 Bitcoin Dominance: 58.52%, while Ethereum holds 10.02% of the market share.
Top Gainers & Losers
📌 Biggest Gainers:
🚀 Onyxcoin (ONX): +35%, trading at $0.03957.
🚀 Other Gainers: Hyperliquid, Ondo, Litecoin, Raydium, Jito, Sui, Flare, Jasmy Coin.
📌 Biggest Losers:
📉 Dogwifhat (WIF) led the list of top decliners.
📉 Other losers include Pudgy Penguins, DeXe, AIOZ Network, Render, Bittensor, Virtual Protocol, Official Trump, Jupiter, Bitget Token, and Maker.
Conclusion
El Salvador’s decision to amend its Bitcoin law reflects a strategic balancing act—meeting IMF conditions while maintaining its pro-crypto stance. Whether the country further adjusts its Bitcoin strategy remains to be seen, but for now, it continues to be a prominent player in the global crypto space.
