Coinbase CEO Points Out Crypto Winter Volumes Were Not So Chilly In South American Countries
“No Crypto Winter” In Latin America Coinbase CEO
As Bitcoin (BTC) passes resistance level after level in 2019, it's safe to say that the crypto-winter is over. Now, many crypto enthusiasts and investors are looking forward to all round growth in Exchange-traded Funds (Etfs), halving spikes as well as institutional interests.
The CEO of Coinbase, Brian Armstrong, explained the differences in the performance of digital currencies in South America when compared to the overall crypto market. On Twitter recently, Brian noted the “different pattern” of volumes in Latin American regions, adding that there was “no crypto winter” in these regions.
“Interesting that the crypto market is following a totally different pattern in LatAm (source data from LocalBitcoins) – there was no winter.”
Latin American Crypto Market
The Coinbase CEO also added some charts to the tweet, showing the volumes recorded globally as well as in 6 Latin American countries on LocalBitcoins, a Finnish crypto exchange platform. These LATAM countries were:
The pattern followed that of the overall crypto market, rising at the end of 2017, due to the Bitcoin bull run of the time, and dipping in 2018 as the crypto winter emerged. Drops were recorded in both August 2018 and January 2019, with a peak noted in November 2018, due to the Bitcoin Cash (BCH) hardfork.
Per the charts tweeted by Brian Armstrong, cryptocurrency volumes recorded in these Latin American countries are totally different, showing huge volume surges all through 2018.
The global cryptocurrency market on the other hand recorded a drop in the previous year and a hike in late 2017.
South American regions have recorded hikes over the past couple of months.
In Chile, an isolated spike was recorded, probably due to short transaction activity, Argentina and Colombia on the other hand recorded patterns close to that of the global market.
Economic And Political Factors
Although Armstrong claims that there was no crypto winter in these regions, the economic state of some of these countries could be the reason for the difference in market pattern. The local currencies of most of the listed countries have dropped against the US dollar. The rapid growth of the crypto market then caused an accelerated incline in the Latin American crypto market.
At the beginning of May 2019, Bitcoin (BTC) surpassed it's all time high against the Argentinian Peso, as BTC passed the $8k mark and ARS became weaker due to the economic and political issues in the region.
Mariano of MakerDAO stated:
“Those graphics are denominated in National Currencies, so while you can see a decline in actual BTC being sold, inflation can you show as “more volume” being generated by operations.”