The price of Bitcoin, which is still over 50% below its all-time high of $69,000 in 2021, has seen a remarkable surge in some countries. Bitcoin’s price has hit new ATHs against some global fiat currencies with higher inflationary attributes.
Bitcoin’s Trading Prices Spike In Some Countries’ Fiats
Within 30 hours between October 23 and October 24, Bitcoin’s trading price in some countries’ fiats hit new all-time highs. These include Argentina peso, Nigeria naira, Turkish lira, Egyptian pound, and Laotian kip.
A crypto analyst, Mile Deutscher, took to the X platform to reveal the new trend in Bitcoin’s price in some countries.
#Bitcoin just hit an all-time high in Argentina, Turkey and Nigeria. 🚀 pic.twitter.com/sKRNUaBMX8
— Miles Deutscher (@milesdeutscher) October 26, 2023
The changes in BTC’s trading prices in the countries are due to the current devaluation of their currencies. Also, the recent 16% spike in the asset’s price scaled up the impact on those countries’ fiats.
The naira and lira witnessed a bottom-out in their equivalence to the US dollar on October 24 and October 25. However, the peso slipped by just 0.85% from its lowest point against the US dollar.
Intense Inflation Ravages Many Countries, Boosting Crypto Adoption
The International Monetary Fund (IMF) reported the impact of inflation on some countries. IMF data revealed that the Venezuelan bolivar has the highest annual inflation rate at 360%.
The Zimbabwean dollar followed in the second position at 314%, while the Argentine peso was third at 122%.
Also, the data highlighted that the Turkish lira and Nigerian naira took the sixth and fifteenth positions with inflation rates of 51% and 25%, respectively. Notably, most prominent crypto assets like Bitcoin and stablecoins serve as a hedge against intense inflation.
According to a Chianlysis September 12 report, Nigeria, Turkey, and Argentina occupy the second, twelfth, and fifteenth countries with the highest crypto adoption rates globally.
Unfortunately, these countries’ governments don’t give maximum support to the crypto industry. On its part, Nigeria has made impressive progress in crypto acceptance recently.
Recall that in February 2021, the country’s central bank banned local banks from providing services to crypto exchanges and firms. Nigeria started taking a positive stance on crypto in December 2022 as it declared its plan to pass a bill recognizing crypto assets as “capital for investment.”
Also, the country highlighted the need to remain up-to-date with global changes and practices, reversing its former crypto stance. As for Turkey, its Central Bank banned using crypto as a payment method for goods and services in April 2021.
However, the country has many crypto enthusiasts who invest and trade huge on crypto assets.
Moreover, Turkey has started plans to develop a central bank digital currency (CBDC), a means to digitalize the Turkish lira. Meanwhile, Argentina’s upcoming presidential election could be part of the factors influencing the country’s inflation crisis.
Notably, the presidential candidate Javir Milei is facing his rival Sergi Massa in the final voting in November, and each has a different view about USD in the country. According to the founder and chairman of Microstrategy, Michael Saylor, inflation in Argentina is 99%, and its citizens should consider Bitcoin.
With inflation at 99% in #Argentina, it’s 99% likely that the citizens of that beautiful country would benefit from #Bitcoin.
— Michael Saylor⚡️ (@saylor) February 15, 2023
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Damien Fisher
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