Today in crypto: The International Monetary Fund is pressing El Salvador to sell its Chivo Bitcoin wallet as part of ongoing negotiations. Ether ETFs snapped an outflow streak as XRP products logged their best day since early December, and VanEck analysts said Bitcoin’s falling hash rate could support prices.
IMF says El Salvador in talks to sell state-run Chivo Bitcoin wallet
The International Monetary Fund’s mission chief for El Salvador issued a statement confirming that government authorities were proceeding with negotiations for the sale of the country’s Chivo Bitcoin wallet.
In a Monday statement, the IMF said El Salvador’s government was continuing to discuss its Bitcoin (BTC) project with the fund’s officials, and “negotiations for the sale of the government e-wallet Chivo are well advanced.” The announcement signaled that the government may be preparing to sell some or all of its crypto holdings in the Chivo wallet.
The statement followed a May deal with El Salvador in which the IMF would pay $120 million as part of a 2024 loan agreement for $1.4 billion. As part of the deal, the government would stop acquiring Bitcoin.
It’s unclear whether El Salvador is abiding by the terms of the deal. Though the IMF reported in July that the country’s government had not purchased any BTC since December 2024, El Salvador’s Bitcoin Office continues to announce crypto buys, including 1,090 Bitcoin worth about $100 million in November.
According to the terms of the IMF-El Salvador deal made public, the government would make public sector engagement of BTC-related economic activity “confined,” the private sector’s acceptance of Bitcoin would be voluntary, and it would wind down involvement in the Chivo wallet. Cointelegraph reached out to the IMF for comment, and a spokesperson said negotiations for the sale of Chivo were ongoing and they could not comment about the details of this transaction.
El Salvador recognized Bitcoin as legal tender in 2021 and began acquiring the cryptocurrency as part of a strategy largely pushed by President Nayib Bukele. According to data provided by the country’s Bitcoin Office, the government held 7,509 Bitcoin as of Monday, worth about $659 million at the time of publication.
Ether ETFs snap outflow streak while XRP products post multi-week highs
Spot Ether ETFs in the US recorded $84.6 million in net inflows on Monday, breaking a seven-day outflow streak in one of the biggest single-day reversals this month.
The shift came after over $700 million exited spot Ether (ETH) products last week, highlighting a pause in selling pressure. According to SoSoValue data, the rebound lifted cumulative net inflows to about $12.5 billion.
At the same time, XRP (XRP) ETFs extended their uninterrupted inflow streak, recording $43.9 million in net inflows on Monday, their strongest daily showing since early December. XRP ETFs have not experienced a single net outflow day since their launch, resulting in cumulative net inflows exceeding $1.1 billion.
While XRP ETF volumes remain modest compared to Ether products, the consistency of the inflows stands out. Instead of the rapid in-and-out rotation, the data suggested that early allocators are gradually building exposure, treating the asset as a positioning tool rather than a short-term trade.
Bitcoin miner capitulation may signal bottom is near: VanEck
Bitcoin’s hashrate has fallen 4% over the month to Dec. 15, which VanEck analysts said in a report on Monday was due to Chinese miners shutting down and could be a positive sign for the cryptocurrency’s price in the months ahead as miner capitulation is “historically a bullish contrarian signal.”
“When hash rate compression persists over longer periods, positive forward returns tend to occur more often and with greater magnitude,” said VanEck crypto research lead Matt Sigel and senior investment analyst Patrick Bush.
They said that since 2014, Bitcoin’s 90-day forward returns have been positive 65% of the time when the network’s hashrate had declined over the prior 30 days, compared with 54% when the hashrate rose.
The trend is optimistic for Bitcoin (BTC) miners as rising prices could widen profitability margins for some or result in turning previously unprofitable miners back online.