The ongoing decline in Bitcoin continues to affect many segments, from institutional investors to individual investors. Recent developments indicate that there has been a significant loss in value in the Bitcoin portfolio held by El Salvador. With the adoption of Bitcoin as the official currency in the country, it seems that policies in this field are also decisive on the country’s borrowing and credit conditions.
Decline in El Salvador’s Bitcoin Assets
According to the data of the Bitcoin Office affiliated with the Ministry of Finance of El Salvador, the country’s total Bitcoin reserves are at 7,560 units and are worth approximately 503.8 million dollars. When Bitcoin peaked in October 2025, the value of the portfolio reached approximately $800 million. The decline in the last four months means a decrease of approximately $300 million in the country’s portfolio.
President Nayib Bukele has long been known as one of Bitcoin’s fiercest advocates. Bukele’s administration is moving forward with a daily Bitcoin buying strategy. However, stable purchases leave the country more exposed to volatility.
On the other hand, Bhutan recently sold $22.4 million worth of Bitcoin. A total of more than 765 million dollars of profit has been made from Bhutan’s mining activities since 2019. Increasing mining costs after the Bitcoin halving in 2024 led Bhutan to reduce its portfolio. In contrast, El Salvador continues to pursue its long-term purchasing strategy.
El Salvador’s administration is also focused on portfolio diversification. Finally, a gold purchase of 50 million dollars was made, and the company turned to more reliable assets such as gold at a time when global economic uncertainties increased.
Crypto Pressure Increases in Relations with IMF
The government’s cryptocurrency policy also determines the negotiations with the International Monetary Fund. Ongoing Bitcoin purchases and delays in pension reform are causing problems in the progress of the financial program with the IMF.
The IMF expresses concern about Bitcoin’s impact on financial stability. Although El Salvador has achieved nominal returns of over 130 percent on its bonds in the last three years, a disruption in the IMF program could negatively affect the country’s borrowing conditions.
“The IMF may be disturbed by the use of loan payments to purchase Bitcoin. The loss of value of Bitcoin increases investor concerns,” said T Rowe Price’s emerging markets analyst Christopher Mejia.
The IMF approved the 40-month Extended Fund Facility program on February 26, 2025, allocating a total of $1.4 billion in financing for the country. After the first review in June 2025, $231 million was paid. But the second review has been on hold since September because the government delayed publishing detailed analysis of the pension system.
During this period, Bitcoin purchases continued despite the IMF’s warnings. The third inspection is expected to be carried out in March. Each review releases additional tranches of credit.
Jared Lou, manager of the William Blair Emerging Markets Debt Fund, expressed his opinion: “Continuing Bitcoin purchases may create some difficulties in IMF inspections. If IMF support is withdrawn, a negative reaction may be observed in the market.”
Indicators in the bond market point to increasing concerns about El Salvador’s debt payment capacity. The country’s credit default swap rates have reached their highest level in the last five months. Bond payments worth $450 million must be made by the end of the year, and approximately $700 million next year. How Bitcoin policies and ongoing negotiations with the IMF will affect the confidence of the markets is being closely monitored.
