El Salvador’s Bitcoin strategy is facing one of its biggest political tests yet. While the National Bitcoin Office continues to quietly deposit one BTC per day, the country’s opposition has lined up candidates for the February 2027 presidential election. Suddenly, the future of the government’s crypto policy is becoming part of the political debate.
Acceptable figures from El Salvador’s Bitcoin Office show national holdings rising to 7,725.37 BTC as of July 27, from about 7,700 BTC a month ago. It is a stark reminder that President Nayib Bukele’s daily accumulation plan remains intact despite the constitutional changes.
The Election Race Has Put Bitcoin Under the Spotlight
Politics has begun to change. The Nationalist Republican Alliance (ARENA) nominated former lawmaker Mrs. Irahetawhen Farabundo Marti National Liberation Front (FMLN) chose a doctor and leader of the union Rafael Aguirre about the presidential race of 2027. All candidates publicly criticized Bukele’s Bitcoin strategy, describing it as an economic failure and not an economic success.
However, both are facing an incumbent president who remains extremely popular after six years in office.
Bitcoin Policy Has Already Been Changed Once
Although El Salvador is known as the world pioneer of Bitcoin, its policies have already changed. Following the IMF loan agreement of $ 1.4 billion in February 2025, the government removed the requirement for businesses to accept Bitcoin, and reinstated the US dollar as the only accepted international currency for daily transactions.
Despite this, the National Bitcoin Office has not stopped buying Bitcoin. The government also increased its gold reserves in January. Meanwhile, the IMF has continued to warn of financial and governance risks while saying the approach has not significantly improved the financial inclusion of unbanked citizens.
Recently, the relationship between the government and the IMF improved after the Deputy Managing Director of the IMF publicly praised El Salvador’s economic performance and said that all aspects are going well. strong progress on comments on the upcoming IMF program.
Markets View Politics Like Charts
For crypto markets, politics is often very important. Bukele has been supporting Bitcoin’s rally, making its third term a driver of positive sentiment in the major market. This does not mean a large government purchase, but investor confidence in itself can affect demand.
On the other hand, a victory for the opposition candidates can create a different market issue by criticizing the principles of the Bitcoin world.
From a technical perspective, Bitcoin is trading below its 200-day EMA during the last week of July. The level of $60,730 is still a necessary support. If the level holds, the price could target $73,696 in August. However, losing that support can be revealing The price of Bitcoin down to $48,798, making El Salvador’s Bitcoin channel a subject for political and market attention.
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