Bitcoin crash cuts $300M from El Salvador’s holdings as IMF reviews $1.4B loan amid continued daily BTC purchases.
El Salvador’s Bitcoin strategy is under renewed scrutiny after a sharp market downturn. As of February 12, 2026, the country’s holdings have lost about $300 million in value.
The decline has added pressure to ongoing negotiations over a $1.4 billion loan with the International Monetary Fund.
Bitcoin Holdings Drop as Market Slides
Bitcoin prices have fallen nearly 50% from their previous year’s peak. From February 1 to February 12, 2026, prices remained volatile and trended lower.
This movement reduced the value of El Salvador’s national Bitcoin reserves.
The country’s total Bitcoin investment declined from about $800 million to around $500 million.
El Salvador holds approximately 7,500 BTC under its accumulation program. The government continues to purchase one Bitcoin per day despite recent losses.
EL SALVADOR NOW HOLDS 7,500 $BTC
THE COUNTRY KEEPS BUYING MORE EVERY DAY📈 pic.twitter.com/PbMEhEdSUB
— That Martini Guy ₿ (@MartiniGuyYT) December 14, 2025
Market volatility has also affected sovereign debt pricing. Credit default swaps on El Salvador’s bonds reached a five-month high.
Investors are monitoring crypto exposure and fiscal stability at the same time.
IMF Loan Negotiations Under Strain
El Salvador is in talks with the IMF over a $1.4 billion financial support program. The loan is viewed as important for meeting near-term debt payments.
Discussions have continued as Bitcoin prices weakened.
BITCOIN CRASH BATTERS EL SALVADOR, IMPERILS IMF DEAL
Bitcoin’s plunge has slashed the value of El Salvador’s holdings by roughly $300 million, exposing the risks of President Bukele’s crypto bet and shaking the country’s debt markets.
Despite the losses, Bukele keeps buying… pic.twitter.com/O24e3nTIzR
— *Walter Bloomberg (@DeItaone) February 12, 2026
Reports indicate that the IMF may object to funding that supports additional Bitcoin purchases.
The institution has raised concerns in past statements about financial transparency and risk. Officials have not confirmed new conditions tied to crypto policy.
To support negotiations, lawmakers revised the national Bitcoin framework. Acceptance of Bitcoin is now voluntary for private businesses.
This marks a shift from the earlier mandatory adoption law introduced in 2021.
Related Reading: Bitfinex Relocates to El Salvador, Strengthens Digital Asset Presence
Debt Payments and Alternative Financing
The country faces major debt obligations in the coming years. Bond markets have shown volatility as investors assess repayment capacity. External financing remains central to fiscal planning.
On February 11, 2026, the Inter-American Development Bank announced $1.3 billion in funding.
The support is allocated for housing and tourism projects through 2026. This funding provides an additional source of capital.
President Nayib Bukele continues to maintain high domestic approval ratings. Surveys from early February show support near 91.9%. ,
The administration has stated that its Bitcoin accumulation strategy will continue as planned.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
US Spot Cryptocurrency ETF Single-Day Net Outflow of $219.5 Million, Bitcoin ETF Outflow of $163.5 Million
Gate News: On March 19, according to SoSoValue data, US spot cryptocurrency ETFs experienced a net outflow of approximately $219.5 million that day, with Bitcoin ETFs seeing a net outflow of $163.5 million, with a Bitcoin ETF under a certain asset management institution leading the decline. (Note: The original text did not fully disclose specific outflow data for Ethereum ETFs and other products.)
GateNews56m ago
Presidio Bitcoin Quick Interview Discusses Bitcoin and AI Intersection
Gate News: On March 19, PresidioBitcoin participated in a quick interview, answering 21 questions in 21 minutes to discuss topics related to Bitcoin, artificial intelligence, and digital innovation. The interview focused on the intersection of cryptocurrency and AI technology, including AI applications to enhance blockchain efficiency and Bitcoin's role in the evolution of the digital economy.
GateNews1h ago
Singapore Ride-hailing Platform Ryde Incorporates Cryptocurrency Into Corporate Balance Sheet
Gate News: On March 19th, Singapore-based ride-hailing platform Ryde announced that it will incorporate cryptocurrency into its corporate balance sheet, becoming one of the enterprises in the sector to adopt a digital asset allocation strategy. This move marks a bold attempt by Ryde in asset management. Currently, an increasing number of enterprises are beginning to allocate digital assets such as Bitcoin on their balance sheets, and corporate asset allocation strategies are showing a diversified trend.
GateNews1h ago
North Carolina proposes bill to establish state Bitcoin reserve
North Carolina has proposed legislation to create a strategic Bitcoin reserve, allowing the state to invest in and manage Bitcoin. The initiative aims to enhance cryptocurrency adoption and could inspire other states to follow suit, diversifying state assets.
GateNews1h ago
