How El Salvador’s BTC Holding Impacts Global Markets

BTC Holding Rises as El Salvador Adds More Bitcoin at $108K

According to research by The Crypto Information, El Salvador is intensifying its Bitcoin strategy, continuing to accumulate BTC even as prices hover near all-time highs. On May 24, the government purchased 1 additional BTC, increasing its total BTC holding to 6,187.18 BTC, now valued at over $674 million.

This recent purchase aligns with Bitcoin’s stable performance around $108,740.88, reinforcing El Salvador’s long-term commitment to BTC despite short-term market consolidation.

Strategic Accumulation of BTC Holdings

Blockchain data indicates that:

• El Salvador added 8 BTC over the past 7 days
• And 31 BTC in the past 30 days

These acquisitions are worth approximately $3.4 million. The trend shows a steady and strategic accumulation pattern, with the BTC balance consistently rising since late April—when holdings were closer to 6.16k BTC. The latest growth to 6.19k BTC signals disciplined buying, even amid a rising market.

Effect of El Salvador’s BTC Holdings on the Market

• El Salvador added Bitcoin at $108K, signaling strong belief in the asset’s long-term potential.
• 30-day BTC accumulation adds $3.4M to the national portfolio.
• BTC remains resilient above $108K, supported by healthy volume and consolidation patterns.

Importantly, all purchases are solely in Bitcoin. The country maintains no exposure to altcoins, reinforcing a focused single-asset treasury strategy. This approach boosts transparency and allows public verification of all transactions on bitcoin.gob.sv.

Why El Salvador’s Bitcoin Strategy Matters Globally

El Salvador’s consistent BTC accumulation sends a powerful message to global policymakers and institutional investors. As the first country to adopt Bitcoin as legal tender, its strategic approach sets a precedent for other nations considering digital assets in sovereign reserves. The move also highlights a growing institutional-level confidence in Bitcoin’s long-term value.

Bitcoin Price Holds Steady Amid Market Volatility

Despite broader market fluctuations, Bitcoin trades steadily near $108,740.88, with a modest 0.13% gain on the day.

• Open: $108,594.76
• High: $108,768.18
• Low: $108,594.62

The price movement suggests tight consolidation, especially during low-volume weekend sessions.

⚡ Potential Risks and Criticism of El Salvador’s BTC Holdings

While the strategy of BTC holding has its supporters, it also faces criticism:

• Volatility of Bitcoin poses a risk to national reserves
• Overexposure to a single asset may cause fiscal instability
• External institutions like the IMF have warned about adopting BTC

Nonetheless, the government’s conviction appears unwavering, prioritizing long-term gains over short-term fluctuations.

Key technical insights:

• A red zone around the CME close shows rapid drops and recoveries.
• A green zone signals bullish strength, pushing BTC toward the $109,250 resistance level.
• The $108,241 support level (dotted line) remains intact, helping preserve short-term positive sentiment.

Market Outlook: What’s Next for BTC?

Volume analysis shows steady interest, with BTC currently trading in a range between $106,500 and $109,250. As long as BTC stays above the $104K level, downside risk remains limited, and upside breakout potential stays alive.