Why has Bitcoin price hit new all-time highs in Turkey, Egypt, Nigeria and Argentina?

Since reaching a low of $16,800, Bitcoin (BTC) has demonstrated notable resilience in 2023, with year-to-date gains of over 153% and a 143% increase over the last 12 months, outperforming major tech companies. The cryptocurrency’s price, however, remains 39% below its all-time high (ATH) against the U.S. dollar, reached in November 2021.

Despite this, Bitcoin has been hitting new ATHs in countries facing high inflationary pressures, including Argentina, Turkey, Egypt, Nigeria, Lebanon, and Pakistan. A recent post by X social platform user Tahini on Dec. 13 highlighted Bitcoin’s ATHs against various currencies in these countries, reflecting the widespread adoption of the cryptocurrency as a store of value and a hedge against inflation.

This meteoric rise in Bitcoin prices in these countries can be attributed to high inflation rates, which have led to the devaluation of their respective currencies. According to data from the International Monetary Fund (IMF), countries like Zimbabwe, Venezuela, and Sudan are currently experiencing annual inflation rates as high as 396%, further illustrating the appeal of Bitcoin in such economic conditions.

The adoption of cryptocurrencies in countries like Nigeria, Turkey, and Argentina has been steadily increasing, with Nigeria, Turkey, and Argentina ranking second, 12th, and 15th globally in terms of cryptocurrency adoption, according to a report by Chainalysis.

Argentina’s recent presidential Election run-off saw pro-Bitcoin candidate Javier Milei emerge victorious, leading to the appointment of an economy minister who announced a significant devaluation of the Argentine peso. This move, which was endorsed by the IMF, further solidified Bitcoin’s prominence in the country as a means of protecting against currency devaluation.

In comparison to the performance of tech stocks, Bitcoin has outperformed most of them except for Meta, which recorded year-to-date gains of over 172%, slightly higher than Bitcoin’s 162%, according to Pantera Capital, an American crypto hedge fund.

Factors contributing to Bitcoin’s resurgence in 2023 include increased institutional adoption, the potential approval of Bitcoin exchange-traded funds, and favorable regulatory developments in the U.S. The upcoming Bitcoin halving event in 2024 is also driving optimism surrounding the cryptocurrency.

In conclusion, Bitcoin’s resilience and performance in the face of economic challenges and market conditions emphasize its growing relevance as a global asset and store of value.

Note: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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