Why has the price of Bitcoin reached new highs in Turkey, Egypt, Nigeria and Argentina?
Since Bitcoin (BTC) dropped to $16,800 in 2018, It has shown resilience throughout 2023, posting gains of more than 153% year-to-date and 143% over the past 12 months, outperforming major tech companies.
Despite this impressive performance, the demand cryptocurrency's price is still 39% below its all-time high (ATH) reached against the US dollar in November 2021.
Meanwhile, Bitcoin continues to hit new ATHs in Argentina, Turkey, Egypt, Nigeria, Lebanon and Pakistan.
This is what #Bitcoin looks like for the citizens of Turkey, Egypt, Nigeria, Argentina, Lebanon, and Pakistan. A combined population of 725 million people is not worth persuading Bitcoin. Good luck pic.twitter.com/z8poh2C7Wb
— The Tahini (@TheRealTahinis) December 13, 2023
According to the December 13 post, on December 12, at one point, the price of 1 BTC reached ATHs at 15,176,100.12 pesos from the Argentine peso. BTC was worth 1,202,109.40 Turkish Lira, 32,703,517.06 Nigerian Naira and 1,280,955.47 Egyptian Pound.
The chart also shows that BTC against the Lebanese Pound and Pakistani Rupee reached ATHs of 622,548,74.67 Lebanese Pound and 11,736,063.26 Pakistani Rupee.
It is worth noting that these figures are equivalent to the current price of Bitcoin and that the meteoric rise of the cryptocurrency in these countries is due to the devaluation of their respective currencies due to high inflation.
Data from the International Monetary Fund (IMF) set countries' annual percentage changes in inflation and final consumer prices.
According to the table above, the Zimbabwean dollar currently has the highest annual rate of inflation at 396%, followed by the Venezuelan bolivar (250%), the Sudanese pound (238%) and the Argentine peso (135%).
The Turkish lira and the Nigerian naira came in fifth and 12th, with annual inflation rates of 64% and 30% respectively, according to IMF data.
For most crypto investors in these countries, Bitcoin has become a safe store of value and a hedge against rocket inflation.
Many of these countries, including Nigeria and Argentina, are accepting cryptocurrencies even as their currencies are constantly depreciating.
According to a September 12 Chainalysis report, Nigeria, Turkey and Argentina boast the second, 12th and 15th highest cryptocurrency adoption rates worldwide.
Argentina's Bitcoin Adoption in 2018 Following the results of the November 19 presidential runoff, pro-Bitcoin candidate Javier Malé is likely to emerge as the winner.
#Bitcoin is hope for Argentina. Congratulations @JMilei.
— Michael Saylor⚡️ (@saylor) November 20, 2023
After taking office on December 10, Millay appointed Luis Caputo as economy minister, announcing on December 12 that Argentina was devaluing the peso by 50% to 800 pesos per US dollar as part of an “emergency package” to balance the budget by 2024. This move seems to have been confirmed by the IMF.
NEW: Economy Minister Javier Millay has announced a tough “emergency package” to balance the budget in 2024.
The measures include layoffs for new government employees, a 34 percent cut in government jobs, and the cancellation of all public infrastructure.
So far the IMF has approved it pic.twitter.com/MHlIZ79Bz8
— Bitcoin News (@BitcoinNewsCom) December 13, 2023
The IMF called the measures “bold,” adding that they would “significantly improve public finances while protecting the most vulnerable in society and strengthening the exchange rate regime.”
On the campaign trail, Millay said he would eliminate Argentina's central bank if he took over as president.
Related: Bitcoin derivatives data points to traders targeting $50K BTC price
Bitcoin surpasses technology companies
During the extended bear market of 2022, Bitcoin fell steadily along with tech stocks. According to a valuation letter from Pantera Capital – an American crypto hedge fund – Bitcoin has outperformed all but Meta, which has posted a YTD gain of over 172% compared to BTC's 162%.
Last year, the price of bitcoin decreased with tech companies. This year he performed better than any other.
That's the 14-year history of #bitcoin – highs, lows and highs every cycle.
Our Year in Review Letter: https://t.co/fy9wy78dVG
Let me summarize it below:
The… pic.twitter.com/cgvOdHZcBk
— Dan Morehead (@dan_pantera) December 12, 2023
Bitcoin in 2010 Backed by “most significant events” in 2023, which are “good news,” Pantera said, “the blockchain industry has made meaningful and important progress.”
The crypto hedge organization lists several of these events, adding that the institutional adoption courtesy of “Spot Bitcoin ETFs sponsored by big names in traditional finance – such as BlackRock and Fidelity – and the leader in blockchain ETFs, Bitwise.” The approval of Bitcoin exchange-traded funds opens a new channel for traditional capital to enter Bitcoin as “digital gold”.
In the letter, the market's ability to rely on the US court system to be fair, referring to Judge Annalisa Torres's decision that XRP (XRP) is not a security, and Grayscale won the case against it. Securities and Exchange Commission Regarding BTC ETF Application. These indicate a favorable regulatory landscape for crypto in the U.S., allowing for more innovation to occur offshore, according to the report.
Apart from these, Bitcoin's halving event in 2024 is fueling the widespread optimism surrounding the flagship cryptocurrency.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
