El Salvador is one of the nations that legalized Bitcoin, but as per a recent report by Reuters, the congress in the nation has swiftly approved the legislation to amend its Bitcoin laws to comply with a deal with a key international lender to make acceptance of cryptocurrencies voluntary.
As per available information, El Salvador has locked the $1.4 billion loan deal with the international monetary fund in December 2024, with the agency seeking the government of the nation to scale back its involvement in BTC, making it voluntary and optional for the merchant in the private sector.
It is worth noting that the legislation was passed with 55 votes favoring and only 2 votes against, yet before this amendment the acceptance of Bitcoin was a legal requirement for businesses accepting BTC as a mode of payment.
Elisa Rosales, the lawmaker of El Salvador’s current administration, argued that this amendment was mandatory for guaranteeing the BTC’s “ permanence as legal tender,” while facilitating its practical implementation.
On January 21, 2025, The Paypers reported that despite the condition of the IMF to reduce its crypto exposure, El Salvador bought another 12 Bitcoins, and till writing the total holding of the nation was 6,049.18 BTC with a change of +4 Bitcoins in the past 7 days.
The press time price of the total Bitcoin holding of El Salvador was $636,259,132.
Will El Salvador change its Bitcoin buying strategy in the near future?
As per experts, the recent deal with the International Monetary Fund is expected to change El Salvador’s stance over Bitcoin and cryptocurrencies, yet to date the mindset of the nation seems to be the same as previous.
It is worth noting that the allocation of a nation’s funds for buying more and more cryptocurrencies might turn into a foolish decision as the digital asset market is termed as one of the most volatile markets in terms of prices.
According to data from CoinMarketCap, Bitcoin grew 169766956.46% since it debuted, and when writing it was trading at $104,946 at the same time its market capitalization was $2.08 trillion and trading volume was $52.18 billion with a surge of $52.18 billion.
The recent change in the leadership of the United States is expected to back the popularity and adoption of cryptocurrencies and especially Bitcoin.
Crypto Market price updates
At the time of writing, the cryptocurrency market capitalization was $3.55 trillion, with an intraday addition of 1.93 percent, and in the same time frame, the trading volume was $129.89 billion 15.04 percent.
Bitcoin currently dominates 58.52 percent of the wider market Ethereum has a dominance of 10.02 percent and the remaining 30.7 percent is held by other remaining cryptocurrencies.
The intraday gainer’s list has been ruled by Onyxcoin which reached $0.03957 with a surge of 35 percent followed by Hyperliquid, Ondo, Litecoin, Raydium, Jito, Sui, Flare, and Jasmy Coin.
The losers list has been led by Dogwifhat, Pudgy Penguins, DeXe, AIOZ Network, Render, Bittensor, Virtual Protocol, Official Trump, Jupiter, Bitget Token, and Maker.
