El Salvador Continues to Buy 1 Bitcoin Daily
The El Salvador government continues to implement its policy of purchasing 1 Bitcoin daily. Since November 2022, it has maintained this daily purchase, currently holding approximately 7,734 BTC in national reserves, valued at around $500 million. This plan continues despite the loss of Bitcoin's legal tender status, following the IMF agreement. Sovereign funds are consistently flowing into Bitcoin through regular investments, with national reserve assets shifting towards hard currency, benefiting long-term holding strategies while sellers face pressure during short-term fluctuations.
Source: Public Information
ABAB AI Insight
El Salvador became the first country to designate Bitcoin as legal tender in 2021, initiated by President Bukele to accumulate national reserves. Since the end of 2022, it has maintained a fixed daily investment model of 1 Bitcoin, which has not been interrupted despite price crashes, IMF loan conditions, and adjustments to its legal tender status. Resource allocation focuses on traceable continuous purchases on public chains and occasional low-price accumulation, motivated by the aim to use Bitcoin as a long-term reserve asset to hedge against local currency and traditional reserve risks, while signaling sovereign adoption globally. This is similar to the early central bank accumulation of gold or the gradual allocation of strategic assets by small open economies like Singapore; it is currently transitioning from experimental adoption to institutional reserve management, shifting from policy pioneer to continuous executor. Essentially, it represents capital concentration: sovereign funds are flowing into scarce digital assets at low frequency and with high discipline, with the mechanism of averaging costs over time to convert short-term market noise into long-term holding advantages.
ABAB News · Cognitive Laws
- The power of regular investment lies in ignoring short-term noise.
- The true test of sovereign reserves is sustainability.
- Policy signals are more penetrating than single-scale actions.