El Salvador has ceased using public funds to invest in Bitcoin after reaching an agreement with the International Monetary Fund (IMF), according to a report by Crypto Rover on April 26, 2025.

The decision aligns with IMF's conditions, impacting Bitcoin's institutional demand in the region and potentially affecting market sentiment.

El Salvador's IMF Agreement Alters Bitcoin Strategy

Under the extension of a fund facility with the IMF, El Salvador agreed to halt public sector Bitcoin purchases. This decision follows conditions preventing further voluntary Bitcoin accumulation by the government.

The IMF agreement includes obligations to mitigate Bitcoin-related risks, mandating public fund restrictions. Such steps are anticipated to stabilize engagements linked to the country's financial commitments.

Méndez Bertolo, Executive Director for El Salvador at the IMF, - "Bitcoin-related risks are being mitigated... Acceptance of Bitcoin will be voluntary, tax payments will be made in US dollars, and the role of the public sector in the Bitcoin project will be confined."

Bitcoin Price and Regulatory Challenges Post-Salvadorian Shift

Did you know? El Salvador became the first country to adopt Bitcoin as legal tender in 2021, setting a historic precedent among sovereign nations.

According to CoinMarketCap, Bitcoin (BTC) is priced at $93,935.04, with a market cap of 1,865,251,176,907.58. Bitcoin's 24-hour trading volume stands at $17,718,493,033, reflecting a 22.20% decrease. Its market dominance is 63.41%, showing fluctuations over the past 90 days.

The Coincu research team observes potential regulatory restructuring due to El Salvador's policy shift, with further implications for Bitcoin's perceived role in national finance. Historical trends reflect challenges in merging traditional finance and cryptocurrency regulation.