The International Monetary Fund (IMF) has urged El Salvador to stop accumulating Bitcoin through both purchases and mining, according to a new Staff Country Report. The recommendation is part of the conditions tied to the country’s $1.4 billion loan agreement, Forbes reported.

Meanwhile, BTCUSD is hovering near the support level, where it rebounded earlier today after two bearish days. Traders may closely watch the price action at this level to assess its next intraday direction.

El Salvador Faces IMF Bitcoin Restrictions

El Salvador adopted Bitcoin as legal tender in 2021, drawing global attention. However, the IMF has consistently expressed concerns about the policy. The latest report calls for the country to liquidate the fund created to purchase Bitcoin . The IMF also wants the public sector to halt all involvement with the cryptocurrency.

The report acknowledges El Salvador’s progress in certain areas, including improved security and a rise in tourism. However, the IMF highlights ongoing macroeconomic imbalances, fiscal deficits, and substantial debt. The loan agreement could unlock up to $3.5 billion in additional financing from organizations like the World Bank and the Inter-American Development Bank.

Bukele Agrees to IMF Bitcoin Terms

President Nayib Bukele has shifted his stance on the IMF. He initially dismissed the fund's concerns but later made changes to the Bitcoin Law and agreed to cease public Bitcoin involvement. The report states that Bukele's administration aims to address structural economic challenges under the IMF-supported program.

El Salvador must fully comply with the IMF’s recommendations by December 2025. The country is required to disclose all Bitcoin holdings by the end of March, listing assets managed by public entities such as Chivo, the Bitcoin Management Agency, and the Lempa River Hydroelectric Power Plant. A second review of this process is scheduled for June.

BTCUSD Tests Support After Bearish Trend

The BTCUSD H1 chart indicates a bearish trend after the price was rejected at the 95,000 level. Following the formation of a double top, the price continued its downward movement until it found support and bounced at 82,450.

As of now, the cryptocurrency is trading right at this critical support level. If the price breaks below this support, followed by a confirmed breakout, the bearish trend could continue for a while, potentially driving the price even lower.

On the other hand, if a bullish reversal pattern forms at the support level, it may attract buyers, leading to upward momentum. This could push the price back toward the North, reversing the recent bearish trend and possibly initiating a new bullish phase.

DeepSeek AI Outlines Bitcoin Scenarios for 2025

Bitcoin has been in a bearish trend on minor charts for a period. However, from a broader perspective, DeepSeek AI has outlined three potential scenarios for Bitcoin in 2025. In the base case, Bitcoin is expected to trade between $100,000 and $150,000, according to Finance Magnates.

In a bullish “hyperbitcoinization” scenario, the price could rise to $350,000. A black swan scenario suggests a peak of $500,000. These projections are based on expectations of increased institutional adoption and broader blockchain acceptance in global finance. However, DeepSeek AI highlights the uncertainty and volatility surrounding these forecasts.