Bitcoin / Turkish Lira Trading Pair Hits Historic High as Turkish Lira Continues to Depreciate
The ongoing depreciation of the Turkish lira has prompted people to turn to cryptocurrencies like Bitcoin for asset protection. The Bitcoin / Turkish Lira trading pair has reached a historic high, which could also signal a shift in global financial hedging strategies.
Bitcoin Hits $100,000 for Fourth Consecutive Day
Bitcoin has surpassed $100,000 for four consecutive days, with market sentiment improving. Optimistic market analysts predict that BTC will soon reach a new all-time high (the previous high was $109,800 in mid-January this year).
Turkish Fiat Depreciation Leads to Flow of Funds into Bitcoin
Over the past 5 years, each time Turkey experiences a major fiat currency depreciation crisis, there is a noticeable increase in cryptocurrency trading volume, with Bitcoin becoming a new hedge choice for the public. As the U.S. President Trump initiated a trade war, the U.S. dollar began to weaken, leading to devaluation of currencies worldwide. In this context of heightened global economic uncertainty, will cryptocurrencies become a financial hedge tool for more unstable countries? Will Turkey’s situation occur in more countries? This is worth continued observation.
Turkey Ranks Among the Top Adopters of Cryptocurrencies
Due to inflation and fiat currency depreciation, Turkey has become one of the leading countries in cryptocurrency adoption in recent years. A research report released by the world’s largest exchange, Binance, 23 years ago showed:
- 40% of Turks hold digital asset investment positions;
- 73% of respondents believe that the number of cryptocurrency investors will continue to increase in the next 5 years;
- 2 out of every 5 Turkish residents hold digital assets;
- Local cryptocurrency acceptance in Turkey has increased from 16% to 40% in the past 3 years;
- Turkey is the fourth largest cryptocurrency trading market globally, with significantly higher trading volumes than several major economies in the world.
