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Is the end of Bitcoin in El Salvador? Congress has just thrown cold water on Bukele.
The news that shook the crypto community: El Salvador has just removed Bitcoin's status as legal tender. After years of positioning itself as the quintessential Bitcoin country under Nayib Bukele, Congress approved a reform that formally cancels this status.
What exactly happened?
According to reports from February 2, the decision came under pressure from the IMF to secure a $1.4 billion loan. The new legal framework is clear:
The political drama: Bukele vs IMF
Since 2021, when Bukele adopted Bitcoin as the second legal tender in September, the IMF has been relentless with criticism. The organization constantly warned about economic risks and volatility. Bukele ignored the warnings for years, but in the end, money spoke louder than crypto ideology.
The irony: surveys showed that the majority of Salvadorans never benefited from or wanted to use Bitcoin due to its extreme volatility. The mass adoption that Bukele promised never arrived.
But did Bitcoin really “die” in El Salvador?
Not exactly. Technically it lost its legal status, but:
That is to say, El Salvador did not abandon Bitcoin… it simply stopped forcing anyone to use it.
The impact on prices
The news helped BTC drop 3.68% in 24 hours, breaking $97,127. Experts see more potential declines considering the bearish sentiment generated by this political reversal.
The plot twist: While the price falls and they lose their legal status, El Salvador buys more Bitcoin than ever. Bukele playing 4D chess or betting everything that this was just a temporary political adjustment.