Bitcoin Trading Volume Is Soaring on the Largest Turkish Crypto Exchange Since Lira Crashed
Lira’s weakness is likely to continue as President makes another replacement and the central bank policy meeting is coming on April 15.
Turkish people are giving the nod to Bitcoin in response to their crashing fiat currency.
According to data provider Kaiko, ever since the Turkish lira took a big fall, the BtcTurk exchange volume went up.
“As the Turkish lira plunges, trade volume has soared on the country's largest cryptocurrency exchange BtcTurk. BTC-TRY is up 94% YTD while BTC-USD is up only 77%, which suggests demand for Bitcoin in Turkey is above the market average,” it noted.
As we reported, last week TRYUSD took a deep plunge with a flash crash of more than 15% to an all-time low from Nov. last year, in response to President Recep Tayyip Erdogan firing the central bank governor, Naci Agbal.
The new governor Sahap Kavcioglu managed to lift Lira about 2.5% today by pledging a “tight monetary stance.”
But Erdogan has made another replacement, deputy governor Murat Cetinkaya with former Morgan Stanley executive Mustafa Duman.
Piotr Matys Rabobank
“Kavcioglu has made yet another attempt to reassure nervous investors that monetary policy will remain tight, providing the lira with some brief respite.”
“But he will find it difficult to convince the market to give him the benefit of the doubt after yet another dramatic reshuffling at the central bank.”
Lira’s weakness is likely to continue with the central bank policy meeting coming on April 15.
As we have seen since last year, fiat debasement is the real risk, and people are turning to Bitcoin, which has a finite supply, as a hedge against inflation. After falling to $3,800 in March 2020, the price of Bitcoin has surged more than 15x to now trade around $59k, near the all-time high of about $62,000.
Bitcoin’s use as a hedge against inflation brought institutions in numbers to the market besides its explosive price movement.
As per Kaiko’s data, BTC-USD vs. BTC-USDT trading volume, which can be considered an indicator of institutional inflows into crypto, shows that after soaring in Q4, it has trended down in Q1 indicating institutions aren’t driving BTC markets any longer. The retail mania is now coming back.