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.