El Salvador has provided documentation showing that its Bitcoin accumulation since June 27, 2025, came from private donations rather than public resources, according to the International Monetary Fund.

The disclosure appeared in a Sept. 3 IMF statement announcing a staff-level agreement covering the combined second and third reviews of the country’s Extended Fund Facility.

The IMF said it also reached an understanding with Salvadoran authorities that no further Bitcoin accumulation beyond the documented donations is expected. The announcement does not identify the donors or specify the amount of Bitcoin received privately.

El Salvador Bitcoin records address funding questions

The latest disclosure helps explain apparent increases in wallets associated with El Salvador’s Strategic Bitcoin Reserve. Those increases had raised questions about whether the government was continuing to purchase Bitcoin despite its IMF commitments.

The IMF said Salvadoran authorities supplied documentation verifying that the accumulation recorded after the first EFF review reflected private donations. It stated that no public money financed those additions.

The distinction matters because blockchain records can show assets entering a wallet but do not automatically identify whether they came from purchases, internal transfers or donations. Crypto.news previously examined how government wallet movements can create misleading impressions of sovereign Bitcoin purchases.

In July 2025, IMF documentation said the total amount held across government-controlled wallets remained unchanged. It explained that some reported increases reflected Bitcoin consolidation among different state-controlled addresses.

Earlier crypto.news reporting also found that daily Bitcoin purchase claims conflicted with IMF program disclosures. The new documentation introduces private donations as the source of accumulation recorded after June 27, 2025.

IMF agreement could release another $140 million

IMF staff and Salvadoran authorities reached their agreement following the combined second and third EFF reviews. The arrangement remains subject to approval by the IMF Executive Board and completion of agreed prior actions.

If those requirements are met, El Salvador would receive approximately $140 million, equivalent to SDR 101.96 million. The IMF approved the 40-month EFF in February 2025 with total access of approximately $1.4 billion.

The country has received SDR 172.32 million under the program so far. The IMF described the latest agreement as preliminary because its Executive Board has not approved the reviews or authorized the additional disbursement.

The Fund said El Salvador’s economic activity had exceeded earlier expectations. It projects real gross domestic product growth of 4.5% in 2026, supported by investment, consumption, remittances, tourism and capital inflows.

That forecast remains subject to economic conditions. IMF staff also called for continued fiscal consolidation, stronger governance and a reduction in public debt toward 80% of GDP by 2030.

Chivo wallet moves under private control

El Salvador has substantially reduced public participation in Chivo, the electronic wallet introduced alongside its Bitcoin policy. Majority ownership and operational control have been transferred to an unidentified private operator.

The government retained a minority stake and custodial responsibilities for customer assets. The IMF said authorities were also working to improve transparency surrounding Bitcoin held across different wallets.

The transfer follows prolonged discussions over reducing the government’s direct role in crypto services. As crypto.news previously reported, negotiations over Chivo formed part of the wider IMF funding arrangement.

Under the original EFF conditions, El Salvador made private-sector Bitcoin acceptance voluntary, required taxes to be paid in U.S. dollars and limited public-sector participation in Bitcoin-related activities.

No further Bitcoin accumulation is expected

The IMF said it reached an understanding that El Salvador would not accumulate more Bitcoin beyond the documented private donations. The wording describes an expectation under the staff-level agreement rather than an independently enforceable ban announced by the Fund.

“Going forward, no further Bitcoin accumulation beyond the documented donations is expected,” IMF staff said.

The two sides also agreed to pursue changes to El Salvador’s legal, regulatory and supervisory framework for digital assets. Planned work includes strengthening governance and risk controls for crypto assets held by the public sector.

The Executive Board must now consider the staff report. Until it approves the reviews and El Salvador completes the required actions, the additional $140 million remains unavailable.

Bitcoin recorded its strongest monthly gain since November 2024 during August, but Fidelity said the advance does not prove that the latest crypto bear market has ended.

In its fourth-quarter crypto market outlook, Fidelity said Bitcoin, Ethereum and several altcoins recorded their strongest positive months since late 2025. Bitcoin gained more than 25% during the third week of August alone.

Ethereum rose 34.1% during the same period, while Solana advanced 28%, according to Fidelity. The gains followed relatively subdued market activity from June through the middle of August.

However, Fidelity warned that the rally could represent either the beginning of a sustained recovery or a temporary move within a continuing bear market.

Bitcoin bear market faces a November cycle test

Some investors are watching November 2026 as a possible market-bottom period based on Bitcoin’s historical four-year cycle. Bitcoin’s previous major bear-market bottom occurred in November 2022.

Applying the same approximate interval would place the next potential bottom around November 2026. Fidelity stressed that historical cycles have never followed precise four-year schedules and cannot reliably identify market turning points.

The firm said Bitcoin may have already reached its low in July. It could also decline again and establish another low during November or later.

“Despite the recent push higher in price, there is no guarantee the bear market is over,” Fidelity said.

Chris Kuiper, vice president of research at Fidelity Digital Assets, said adoption has historically occurred in waves that can help sustain market cycles. He argued that a longer holding period has generally proved more useful than attempting to time exact bottoms.

That view remains an observation based on historical performance. It does not establish that Bitcoin will repeat an earlier cycle or continue appreciating.

Volatility shift offers a possible recovery signal

Fidelity identified Bitcoin’s transition from lower volatility to a sharp upward expansion as one possible sign that sellers were becoming exhausted.

Kuiper said digital assets experienced relatively low volatility between June and mid-August. Fidelity’s analysis placed assets such as Bitcoin near the lower, or “value,” end of their historical ranges during that period.

The subsequent rally resembled volatility patterns seen near some previous bear-market endings. Bitcoin’s rapid advance above $80,000 was followed by a retreat toward $79,250, as crypto.news reported in its analysis of overbought conditions increasing short-term pullback risks.

That technical reading did not establish a new bear market. It showed that Bitcoin had risen rapidly enough to increase the probability of consolidation after the advance.

Kuiper also noted that developments which might previously have pressured prices, including a hardware-wallet security incident and delays surrounding the CLARITY Act, did not reverse the August rally.

This resilience “could further strengthen the case” that cryptocurrencies are near a bottom, Kuiper said, while stopping short of confirming one.

Adoption continued while cryptocurrency prices weakened

Fidelity said digital-asset adoption remained resilient during the earlier market decline. Stablecoin transaction volume, tokenized real-world assets and institutional participation continued growing even as the broader market capitalization weakened.

The firm described network adoption measures as comparable to fundamental indicators used when evaluating traditional businesses. Rising transaction activity can demonstrate continued use, although it does not guarantee higher token prices.

Institutional investment products also showed mixed allocation patterns before Bitcoin’s August rally. In related coverage, crypto.news reported that Ethereum funds attracted more capital than Bitcoin funds during July.

Bitcoin exchange-traded fund demand subsequently recovered during August. Fidelity listed stronger institutional adoption among the factors that could support another bull market, alongside regulatory changes, monetary policy and new blockchain use cases.

U.S. policy decisions remain key fourth-quarter catalysts

The U.S. regulatory calendar could provide two major tests during the fourth quarter. The CLARITY Act remains pending in the Senate after the Senate Banking Committee advanced it by a bipartisan 15–9 vote in May.

A procedural vote is scheduled for Sept. 15 and requires 60 votes to advance the bill toward debate. The legislation would divide elements of digital-asset oversight between the SEC and CFTC. However, passage remains uncertain, and further amendments could require additional House consideration.

As crypto.news reported, the bill now faces a tight congressional timetable before the midterm elections.

Separately, the SEC proposed Regulation Crypto Assets on Aug. 18. The proposed framework would create two securities-registration exemptions for qualifying crypto investment contracts.

The SEC’s formal proposal would allow eligible offerings of up to $5 million over four years or $75 million during a 12-month period, subject to specific conditions. Public comments are due by Oct. 20.

Crypto.news previously examined how the proposed exemptions would reshape token fundraising. The proposal is not final and may change following public feedback.

These policy proceedings, monetary conditions and institutional participation could shape Bitcoin’s fourth-quarter direction. None provides confirmation that the bear market has ended, leaving price action and adoption data as continuing tests of the August recovery.

The United States and United Kingdom have formed a joint law enforcement alliance targeting scam centers involved in crypto and cyber-enabled investment fraud. 

On Thursday, the US Department of Justice announced that the US Attorney’s Office for the District of Columbia, the Crown Prosecution Service of England and Wales and the UK National Crime Agency signed a memorandum of understanding. The DOJ described it as the “first-of-its-kind” international cooperation agreement aimed at disabling such scam centers.

Under the agreement, the agencies will conduct parallel investigations into common targets, share information on organized crime syndicates and discuss which jurisdictions should prosecute specific cases. The DOJ said the authorities have already identified overlapping cases and plan an in-person disruption operation with private-sector partners in London in early October.

The cross-border pact comes as reported US losses from crypto investment fraud continue to climb. Losses reported to the FBI’s Internet Crime Complaint Center rose 89% from $4.57 billion in 2023 to $8.65 billion in 2025, according to the DOJ. 

International efforts target crypto scam compounds

The agreement expands the Scam Center Strike Force, which US Attorney Jeanine Ferris Pirro launched in November 2025 to target Chinese organized crime networks operating scam centers primarily in Southeast Asia. Their schemes include crypto investment fraud and are often linked to human trafficking and money laundering, according to the DOJ. 

The task force includes the FBI, US Secret Service, Internal Revenue Service Criminal Investigation, Homeland Security Investigations and Justice Department offices. It also works with the US Treasury and State departments and private companies to disrupt scam operations and recover victims’ funds.

Related: Chinese newspaper warns of Bitcoin extortion scam using its name

International authorities have coordinated raids against similar operations. On April 29, the DOJ reported a Dubai police-led operation involving the FBI and China’s Ministry of Public Security, which resulted in 276 arrests and the closure of at least nine crypto scam centers. Six people were charged over schemes that allegedly used fake crypto investment platforms to solicit deposits from victims. 

Governments in Southeast Asia have also pursued tougher domestic measures. On May 15, Myanmar’s military government had released draft legislation proposing sentences ranging from 10 years to life in prison for digital currency fraud, with the death penalty possible when people coerced into working at scam centers were killed. 

On July 28, Parliament approved the bill, though presidential assent had not been confirmed.

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