El Salvador’s Bitcoin journey just hit another roadblock. The International Monetary Fund (IMF) has tightened restrictions on the country’s Bitcoin strategy under a $1.4 billion financial agreement. The new terms ban the public sector from accumulating more BTC. However, President Nayib Bukele doesn’t seem to care—his government continues to buy the dip.
At the same time, Bitcoin’s price has faced wild swings after the U.S. imposed new tariffs under Donald Trump’s policies. Let’s break down what this means for El Salvador, Bitcoin, and the broader market.
IMF Blocks El Salvador’s Bitcoin Accumulation
The IMF has always been skeptical about El Salvador’s BTC adoption. Now, as part of its extended fund facility (EFF), it has officially banned public sector BTC purchases. A new agreement states that the Salvadoran government cannot voluntarily accumulate more BTC while the program is active.
The IMF wants El Salvador to focus on improving transparency, managing risks, and avoiding crypto-related liabilities. It also prohibits the issuance of Bitcoin-backed public debt or tokenized instruments linked to BTC. In short, the IMF is pressuring El Salvador to step back from its Bitcoin experiment.
But Bukele’s administration isn’t backing down. Despite these new restrictions, El Salvador has continued buying Bitcoin in small amounts. On March 3, Bukele announced the country had added 19 BTC to its holdings, bringing the total to 6,100 BTC.
El Salvador Defies IMF, Keeps Buying Bitcoin
Bukele has made it clear that he won’t let the IMF dictate his country’s Bitcoin policies. While the government had paused purchases earlier this year, it has quietly resumed accumulation.
Recently, El Salvador bought 15 BTC as Bitcoin prices dipped below $80,000. Days later, it acquired another 4 BTC, taking advantage of market volatility. Despite the IMF’s warning, Bukele is still betting on Bitcoin’s long-term success.
El Salvador’s Bitcoin holdings are now worth around $500 million. The country continues to adopt BTC for tourism, investments, and even citizenship programs. The question is—how long can it resist the IMF’s pressure?
Trump’s Tariffs Hit Markets, Bitcoin Price Dips
Bitcoin’s price has been all over the place. After hitting nearly $100,000 in February, BTC dropped below $83,000 following the introduction of Donald Trump’s new tariffs. Investors fear a slowdown in global trade, and riskier assets like Bitcoin took a hit.
Stocks also fell, with the S&P 500 dropping 6.5% from its all-time high. Traders rushed to safer assets like U.S. Treasury bonds, pushing bond yields lower. Meanwhile, Bitcoin ETFs saw $74 million in outflows as institutional investors grew cautious.
However, derivatives data suggests Bitcoin’s decline could be temporary. Whales and market makers are still holding strong, and options pricing indicates that further downside risk is limited.
Bitcoin’s Future: Recovery or More Chaos?
Bitcoin’s next moves depend on multiple factors. The IMF’s restrictions on El Salvador won’t stop Bukele from buying more BTC, but they could make it harder for the country to secure international funding.
On the global stage, Bitcoin’s price will likely stay volatile. If Trump’s tariffs escalate into a full-blown trade war, risk assets like BTC could face more downward pressure. On the other hand, if the U.S. government moves forward with its strategic crypto reserve plans, Bitcoin could get a fresh boost.
For now, Bitcoin remains stuck between economic uncertainty and growing institutional interest. While El Salvador fights to keep its BTC strategy alive, the market is waiting to see what happens next.