Here’s Why Colombia Is The Latest South American Country To Hit The Peak In Bitcoin Volume
Recently, we reported that after Venezuela, the trading volume in Indonesia has reached an all-time high (ATH) on the peer-to-peer platform, LocalBitcoins in response to the legal recognition of Bitcoin and digital assets as commodities. Bitcoin trading volume in USD in the USA also quadrupled. Now, Colombia is all seeing an inclination towards the flagship cryptocurrency.
According to the data provided by Coin Dance, the trading volume in Colombia on LocalBitcoins is currently 10 times the volume registered in December 2017. In the January end, the highest volume has been registered at 776 BTC while 664 BTC has been traded till mid-February. In 2017, the highest Bitcoin trading volume has been in May at 330 BTC while 2018 saw a peak at 759 in 2018. Throughout the last year, an increase in Bitcoin trading volume has been registered.
Source: Coin Dance
Another South American country Peru has been seeing a rise in volume with 303 BTC traded in the first week of February. While 2017’s peak has been 55 BTC in May and 252 BTC in December 2018.
Over the course of 2018, South American countries have begun to invest more and more in Bitcoin. Venezuela is the major factor here as the country has been the first one that started seeing a tremendous surge in Bitcoin trading volume as the country goes through the ongoing economic, political and currency crisis.
Colombia’s economic outlook is positive according to the Central Bank chief Juan Jose Echavarria, thanks to the low-interest rates, controlled inflation, and growth recovery. So, the reason behind this surge for one could be the growing awareness, adoption of Bitcoin and as the leading cryptocurrency dropped 70 percent from its all-time high, maybe people are looking to buy the dip. Or maybe everyone is getting prepared for any turmoil that the global markets or economies could encounter.
Another factor could be the Venezuelans migrating to Colombia. According to the reports, for more than two years, millions of people that are escaping crumbling Venezuela that is currently weathering economic collapse have crossed into Colombia.
Reportedly, Colombia has opened its doors to almost 1.5 million Venezuelans that amounts to about 3 percent of Colombia’s population while more are arriving every day.
Initially, Peru has been the “promised land” for many Venezuelans, as during the period of 2017 and 2018, Peru has issued 495,000 of the special permits. On the economic front, the country which is one of the most stable markets of Latin America registered the economic growth of 3.99 percent in 2018.