El Salvador, the first country to adopt Bitcoin as legal tender in 2021, has been closely watched as a pioneer in national-level cryptocurrency adoption. The question of whether El Salvador or other early adopters are currently dumping Bitcoin involves examining recent economic developments, government policies, and Bitcoin holdings by these countries.
El Salvador still holds a significant amount of Bitcoin as part of its national reserves, reportedly over 6,000 BTC, and continues to maintain Bitcoin as an active reserve asset in 2025. Despite some criticism and challenges, the country has not publicly indicated a large-scale sell-off or dumping of its Bitcoin holdings. The International Monetary Fund (IMF), which approved a $1.4 billion bailout for El Salvador in early 2025, has urged the government to avoid increasing its Bitcoin holdings and to strengthen oversight of crypto assets to protect consumers and investors. The IMF also recommended an early exit of the public sector from the Chivo e-wallet, the government-backed Bitcoin wallet, signaling concerns about the government’s direct involvement in Bitcoin operations rather than a directive to sell off Bitcoin reserves[1].
El Salvador’s economy remains dollarized, which limits its monetary policy options, and inflation is projected to rise modestly to 1.8% in 2026 with real GDP growth around 2.5%. The government’s economic program supported by the IMF shows progress in fiscal consolidation and governance reforms, but Bitcoin-related risks are still a concern. The government’s stance appears to be cautious rather than aggressively divesting Bitcoin[1].
Other early adopters in Latin America, such as Guatemala and Brazil, have not adopted Bitcoin as legal tender but are developing regulatory frameworks and crypto ecosystems. Guatemala’s economy is growing steadily, and Brazil has implemented comprehensive crypto regulations aimed at preventing fraud while maintaining market access. These countries are not known to be dumping Bitcoin reserves either; rather, they are fostering regulated environments for crypto use and investment[1][3][5].
Globally, Bitcoin adoption is expanding, with institutional investment, new exchange-traded fund (ETF) products, and clearer regulations in major markets like the US and EU driving growth. Analysts forecast Bitcoin prices could reach between $120,000 and $140,000 by the end of 2025, barring major regulatory shocks. This positive outlook suggests that early adopters might be incentivized to hold rather than sell their Bitcoin reserves[2][4].
In summary, there is no clear evidence that El Salvador or other early adopters are dumping Bitcoin on a large scale. El Salvador continues to hold Bitcoin as part of its national reserves while managing economic challenges and regulatory pressures. The IMF’s recommendations focus on risk management and oversight rather than divestment. Other Latin American countries are advancing crypto adoption with regulatory frameworks but have not signaled any significant Bitcoin sell-offs. The broader global crypto market outlook remains optimistic, supporting continued Bitcoin holding by early adopters[1][2][3][4].