Currency Debasement sees BTC Breaking into a New ATH Against Turkish Lira & Argentine Peso

Government intervention leads to lira depreciation which has resulted in the pairing of BTC/TRY to surge upwards. The Argentine Peso, meanwhile, has also been seeing record levels of activity as holders seek to buy Bitcoin. Volume on P2P exchanges has also hit a new ATH at $1 million.

Bitcoin is currently trading around $11,000 on the USD market, still about 75% off from hitting the 2017 peak of $20,000.

The world’s largest cryptocurrency might still have a way to go before it could see new highs, but in Turkey, the prices have flown upwards.

“Bitcoin's all-time high is already here, it's just not evenly distributed,” said Casa co-founder and CT Jameson Lopp in response to investor Preston Pysh’s tweet, “Bitcoin already making new ATH in Turkey.”

Source: TradingView

This new high has been achieved because of the TRY depreciation despite the state banks selling at least $2.5 billion to prop up the lira. Turkey’s gross currency reserves have dropped about 40% since this year’s beginning. Analysts at MUFG Bank said it would continue at least until inflation is stabilized.

“With the aggressive push for credit into the real economy, investors are also anticipating a deterioration in Turkey’s current account position. Turkey’s current account position turning to the deficit with one of the largest negative real yields is a recipe for currency depreciation.”

Even though the US dollar has been declining, reiterating to a two-year low, the lira continues to weaken.

Once a favorite of emerging-market investors, the cost of borrowing Turkish lira for a short period in an exchange of dollars climbed over 1,000% on offshore markets, the highest level since March 2019. This was because of the heavy intervention late last week, which drained the supply of local currency.

To deter short-sellers, foreign investors are prohibited from borrowing from local banks, as such, those without the currency have to borrow it on the offshore market where the limited supply drives the rate.

Turkish authorities have been leaning on state banks to bolster the lira with dollar sales instead of rising rates or curving the credit supply.

All of this has the lira being one for the worst performers in the emerging markets. Apart from the Argentine peso, the Turkish lira is the only primary emerging-market currency that has fallen since the dollar peaked in March.

The same is the case for the Argentine peso. Currency debasement has people spending 336,980 ARS in December 2017 to buy one Bitcoin, which has now risen above 800k ARS.

Source: CoinGecko

Although it is more of a case for fiat currencies, the currency crisis is making bitcoin slowly a choice of preference to the people of these countries. For instance, Bitcoin trading volume has been continuously hitting new highs in Argentina on peer-to-peer exchanges.

In the week ending on August 2nd, Argentina hit a new high of $1 million, doubling in just a month, on LocalBitcoin and Paxful combined, as per UsefulTulips.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Investors With Low Financial Literacy Are Twice As Likely to Own Crypto vs Market Gurus: Bank of Canada Report

A new study released by the Bank of Canada has revealed that folks with lower financial literacy are more likely to own Bitcoin than...

Love it or Hate it, UNI Token Stands to Benefit from Uniswap’s Evolution

After releasing the UNI token as part of Uniswap V3, the first update for Uniswap V3 has been made on Github. It might say...

Israeli Draft Bill Proposes Bitcoin be Defined as Currency to Cut Down the Hefty Capital Gain Tax

Four members of the Knesset, Israel’s legislative body, from the Yisrael Beiteinu faction, the secular nationalist political party, have submitted a private member’s bill...

TRON Partners With BitGo To Mint New Wrapped Bitcoin And Ethereum Tokens On Its Blockchain

TRON launches wrapped Bitcoin and Ethereum on its blockchain. The blockchain aims at taking over the raging DeFi market. Tron announced a partnership with...

More Urgent than Ever – Ethereum Layer 2 Solution Goes in its First Phase of Testnet Launch

Ethereum layer 2 solution Optimism is welcoming the first phase of the Optimistic Ethereum Testnet. This development has become a necessity of the market thanks...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today