El Salvador has once again increased its Bitcoin reserves, thereby expanding its ambitious strategy of incorporating cryptocurrency into its national economy. The country’s total Bitcoin holdings have increased by five, bringing the total to an estimated 6,055 BTC, which is worth over $600 million at current prices.

El Salvador: An Expanding Bitcoin Strategy

The government is moving faster now in buying Bitcoin compared to before, when it only bought one Bitcoin each day. El Salvador has bought more than 50 BTC in the last month, showing a stronger effort to increase its digital currency holdings.

El Salvador Bitcoin Holdings. Source: Bitcoin Office

This happened right after the government made a $1.4 billion deal with the International Monetary Fund (IMF). The agreement stated that Bitcoin payments should be optional and that the government should have limited participation in the cryptocurrency area. The government is still committed to growing its Bitcoin holdings, no matter the situation.

Bitcoin Purchases Continue Post-IMF Agreement

El Salvador demonstrated its commitment to maintaining an active presence in the cryptocurrency market by promptly purchasing 11 BTC, which is worth over $1 million, subsequent to the IMF agreement. This action is indicative of the nation’s assurance in Bitcoin as a long-term asset, despite the pressures of external financial markets and policy constraints.

El Salvador Bitcoin Holdings. Source: Bitcoin Office

President Nayib Bukele strongly supports Bitcoin and has always encouraged its use in the country. His government strongly believes that Bitcoin can help protect against inflation and serve as a good alternative to regular banks.

Mixed Reactions From The Global Community

Global financial institutions and economic experts have different views on El Salvador’s Bitcoin policy. Some people praise the country for leading the way in adopting Bitcoin, while others warn about market volatility and regulatory hurdles.

Bitcoin’s influence on financial stability has been a subject of concern for the IMF and other international organizations. Nevertheless, the Salvadoran government appears to be unwavering in its commitment to the potential advantages of crypto integration, including economic diversification and increased financial inclusion.

What Lies Ahead For El Salvador’s Bitcoin Experiment

El Salvador continues its Bitcoin adventure, but its long-term success is doubtful. Are the nation’s large crypto investments economically beneficial or will market volatility cause financial instability? The result depends on time.

For now, El Salvador is stepping up its Bitcoin efforts, showing its commitment to digital assets despite external challenges. In the growing world of cryptocurrencies, the next few years will determine whether this ambitious strategy will be a cautionary tale or a model for other governments.

Featured image from Fortune, chart from TradingView

The crypto markets are gearing up for a news-packed week, with several key events on the horizon. Forward-looking or enlightened investors can capitalize on the volatility around these events for trading opportunities.  

Meanwhile, Bitcoin (BTC) remains below the $100,000 milestone following a crash that has triggered massive liquidations across the crypto market.

Kentucky State Bitcoin Reserve Bill

Amid calls for a strategic national Bitcoin reserve in the US, several states have recently proposed and passed BTC bills. Kentucky recently joined the movement with plans to introduce its own Bitcoin proposal.

“I will be filing a bitcoin strategic reserve bill on the first week of my return to the General Assembly,” wrote TJ Roberts, Kentucky Representative.

According to an official filing, Kentucky is meeting in February to consider a Bitcoin Reserve. Others include Illinois, Indiana, Utah, and Arizona. South Dakota’s State Representative, Logan Manhart, also recently indicated plans to introduce a proposal.

If Kentucky and South Dakota lawmakers follow through on their promises, the number of US states with Bitcoin reserve legislation will rise to 13. This trend aligns with Dennis Porter’s expectation that up to 15 states will work on ‘Strategic Bitcoin Reserve’ reserves in 2025. Porter is the CEO and co-founder of the Satoshi Action Fund.

“I can confirm that up to 15 states will be working on ‘Strategic Bitcoin Reserve’ legislation in 2025,” Porter shared on January 17 in an X (Twitter) post.

In a follow-up post the same month, the Satoshi Action Fund executive articulated that these filings would only be the start.

Jupiter’s JUP Buyback Mechanism Activation

Jupiter’s JUP buyback mechanism will be activated this week after an announcement on January 26. The network indicated that half, or 50%, of the protocol fees will go towards buybacks held in the long-term litter box.

“Alignment in action, 50% of Jupiter Exchange protocol fees will now go towards JUP buybacks. The remaining 50% will be invested in the project’s growth, future strategy, and full operational stability,” Jupiter said.  

This decision followed an announcement that the firm’s revenue reached $102 million in 2024. It highlighted the platform’s seventh rank among Solana DApps.

According to the company’s statement, the firm’s primary source of revenue, Jupiter Perps, has an 84% market share among the players in the Solana Perpetual DEX Market. Notably, Jupiter’s income increased 7-fold between January and December 2024, growing from $3 million to over $21 million.

Jupiter’s JUP token is down by almost 10%. BeInCrypto data shows it was trading for $0.87 as of press time.

HeyAnon Public Beta

The public beta for Daniele Sesta’s DeFAI project HeyAnon will go live on Friday, February 7. HeyAnon (ANON) is a novel, AI-driven decentralized finance protocol that simplifies DeFi interactions.

 “Hey Anon, Beta is Here – A Glimpse into the Future of DeFAI We’ve skipped the Alpha stage entirely to bring you straight into Public Beta v0.1—your first hands-on experience with DeFAI and Gemma on the 7th of February,” the project shared on X.

By integrating conversational artificial intelligence (AI) with real-time data aggregation, HeyAnon empowers users to manage DeFi operations seamlessly.

It combines natural language processing and actionable insights to redefine the DeFi user experience, from bridging and staking to tracking project updates and analyzing trends.

Ondo Finance Summit

This week, the first-ever Ondo Finance summit is also among the top crypto news. It will begin on Thursday, February 6, and the project is expected to make a few big reveals.

“The Ondo Summit is just 7 days away—where a bold new vision for Wall Street will be unveiled,” the project shared in a late January post.

The event will take place in New York, as Ondo Finance strives to bring institutional-grade finance on-chain. According to the announcement, leaders in the traditional finance (TradFi) and blockchain spaces will attend. Among them are Franklin Templeton, BlackRock, and Fidelity Investments, all players in the real-world assets (RWA) space.

Despite anticipation for the event, Ondo Finance’s token price is down by over 8%. BeInCrypto data shows ONDO was trading for $1.23 as of this writing.

Injective’s AI Agent Hackathon

More closely, however, markets are also bracing for Injective’s AI agent Hackathon, slated for Tuesday, February 4. Notably, the ceremony kicks off on Monday, setting the pace for the main event. Key participants include Google Cloud, elizaOS, and DoraHacks, among others.

“It’s all about bringing AI and blockchain together to create the next generation of AI agents that can automate trades, manage assets, and maybe even handle the things we keep procrastinating on – like replying to emails or organizing our desk,” one user on X remarked.

Builders compete to win over $100,000 in prizes, grants, funding, and more. They have four weeks to develop their ideas into projects. The top projects will be presented at Demo Day in front of the space’s top builders and investors.

The market for cryptocurrencies is under heavy stress. Slipping below the $100,000 level, Bitcoin has been battered by economic uncertainty brought on by US President Donald Trump’s new wave of tariffs. Investors are now on edge, observing anxiously as global markets respond to the rising trade tensions.

Tariffs Spark Market Anxiety

Financial markets have been rocked by Trump’s move to levy a 25% tariff on imports from Canada and Mexico as well as a 10% tariff on Chinese goods. Already, impacted nations have responded with quick retaliations that raise the possibility of a full-fledged trade war. Apart from a rise in crude oil prices, the reaction of the equities market has been severe, with a clear drop in US stock futures.

Bitcoin Drops To $93k Level

Even Bitcoin, which is frequently regarded as a hedge against more conventional market volatility, was not exempt. The biggest cryptocurrency fell to its lowest point in three weeks, at almost $93,500. As investors pulled back in reaction to the mounting uncertainty, other significant digital currencies, like Ethereum, also saw significant declines.

Cryptocurrency Sell-Off Picks Up Speed

Bitcoin’s price drop has accelerated as economic uncertainty increases. Long-term holders are cutting back on their holdings, according to Glassnode data, which points to a change in sentiment. The market is becoming more cautious and fearful as analysts warn that more declines may be imminent.

BTCUSD trading at $93,900 on the daily chart: TradingView.com

Bitcoin investors are closely monitoring the $90,000 support level, with concerns that a significant drop below it could push prices toward $80,000. Currently, Bitcoin is down about 15% from its January 20 record high of $109,350. However, experienced traders view such corrections as normal in bull markets, where pullbacks of around 30% have been common.

The decline isn’t making everyone freak out, though. Robert Kiyosaki, renowned investor and financial author, sees it as a purchasing opportunity:

TRUMP TARRIFS BEGIN: Gold, silver, Bitcoin may crash. GOOD. Will buy more after prices crash. Real problem is DEBT….which will only get worse. CRASHES mean assets are on sale. Time to get richer.

— Robert Kiyosaki (@theRealKiyosaki) January 31, 2025

The World Prepares For More Volatility

The overall financial landscape feels the crunch. The most recently imposed tariffs have put further pressure on supply chains, resulting in the worst fear of increased inflation and an economic slowdown. Given the cautious stance of the Federal Reserve with monetary policy, investors are put at risk of intense volatility in the weeks ahead.

Canada and Mexico have already announced countermeasures to Trump’s tariffs, and China has hinted at possible economic retaliation. Market experts believe that if the tensions continue to escalate, risk assets, including Bitcoin, may see further declines before stabilizing.

Featured image from Gemini Imagen, chart from TradingView