While some panic-sell, others seize the dip. El Salvador and Tokyo-listed Metaplanet have expanded their Bitcoin BTC/USD holdings as the crypto market slumped to a three-month low.
Despite IMF pressures and market jitters, these Bitcoin believers are standing firm.
A State-Backed Bitcoin Reserve: A Game Changer?
Seamus Rocca, CEO of Xapo Bank, sees Bitcoin’s role evolving: “One could argue that a State-backed Bitcoin reserve is the ultimate validation that Bitcoin is a better store of value than Gold.”
He suggests that government adoption could legitimize Bitcoin in traditional markets while limiting supply and potentially driving prices higher.
Rocca also notes that how a government accumulates Bitcoin matters. Buying BTC with US Treasuries could impact a country’s liquidity, while holding confiscated BTC could serve as a strategic financial tool.
Rather than undermining individual holders, state-level adoption might strengthen Bitcoin’s long-term investment case.
El Salvador Sticks To Its Bitcoin Playbook
President Nayib Bukele took to X to announce El Salvador’s latest Bitcoin purchase—7 BTC (around $614,000 worth), bringing the nation’s total reserves to 6,088 BTC, valued at approximately $541 million.
This comes after speculation that IMF pressure had forced the country to halt its daily Bitcoin buys.
Bukele’s response? “O ye of little faith.”
Metaplanet Ramps Up Its Accumulation
Meanwhile, Metaplanet added 135 BTC worth ¥1.9 billion ($12.9 million), pushing its total holdings to 2,235 BTC.
The firm has ambitious targets – 10,000 BTC by the end of 2025 and 21,000 BTC by 2026.
The Bigger Picture
With institutions and even governments increasingly accumulating Bitcoin, the asset’s limited supply could trigger a massive supply squeeze.
Whether this signals a global Bitcoin arms race or just another phase in its volatile journey, one thing is clear – El Salvador and Metaplanet aren’t waiting to find out.
They’re buying the dip.
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