El Salvador’s Bitcoin holding strategy is facing a major test amid recent price fluctuations.

Reports say the value of assets worth more than 7,500 BTC held by the country has fallen by more than $300 million due to the recent decline. At its peak, El Salvador’s Bitcoin holdings were worth about $800 million, but they have now dropped to roughly $495 million.

What’s interesting is that even in this situation, El Salvador is continuing to buy 1 BTC per day. In the past 7 days, it has added 8 BTC, suggesting it is treating the price drop as a buying opportunity. This clearly signals a bullish stance.

That said, here’s where things get complicated. Negotiations are underway for a $1.4 billion loan program with the IMF. The International Monetary Fund has long expressed concerns about El Salvador’s Bitcoin holdings. Recently, it has shown an attitude of acknowledging the need for transparency, but with Bitcoin having lost more than 40% of its value, its stance could change.

In the market, there are also views that if El Salvador continues buying BTC, the IMF may pull out of the loan program. This is a concern that cannot be ignored, as it could deal a major blow to the country’s debt market.

In fact, the recent drop in Bitcoin’s value has also affected El Salvador’s 10-year bonds. While recovery is currently underway, the cost of insurance against bond default has increased, making it clear that the market recognizes the risks.

On the other hand, some experts note that the U.S., as the IMF’s largest shareholder, could use its influence over El Salvador, which has strong ties to the Trump administration. Additionally, the country recently secured a $1.3 billion loan commitment from the Inter-American Development Bank for 2026, putting it in a position with some leverage to ease pressure from the IMF.

El Salvador’s Bitcoin holding strategy is not just an investment decision—it is at the center of a political and economic tug-of-war at the national level. It’s worth keeping an eye on how things unfold from here.