The price of Bitcoin (BTC) has reached a new all-time high (ATH) in Turkey at 1,076,038.99 Turkish Lira (TRY) as the country’s inflation remains in discouraging ranges.
Bitcoin’s wild rise to ATH in the region began back in March 2020, when the lockdowns caused by the COVID-19 pandemic began. The growth of Bitcoin is evidence of its acceptance in the country as an alternative to the local currency.
Bitcoin hug amid falling lira
Turkey is considered one of the most important crypto hotspots. The obvious reason why Bitcoin represents a crucial part of Turkey’s financial landscape is due to the continuous devaluation of the lira. The acceptance of Bitcoin by many Turkish residents is a necessary “flight to quality” impetus, a Phrase attributed to BlackRock CEO Larry Fink.
Although there have been several sharp corrections, Bitcoin’s rise in Turkey began in 2020 when the coin first reached a maximum price of TRY 479,551.90 on April 30, 2021. The price of Bitcoin fell again to TRY 269,146 by mid-July 2021, a sign that the Turkish lira has strengthened relative to Bitcoin.
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BTC vs Turkish Lira
The following months saw a series of ups and downs, but things came to a head in February-March 2022, when war broke out between Russia and Ukraine. The most significant move towards the current ATH began when Bitcoin traded at a low of 315,013.22 on December 2, 2022 and sailed with the flow until it broke its record today.
At the current all-time high, the BTC/TRY pair has grown a total of 116,185.22%.
BTC as an inflation hedge
A good reason for the massive devaluation of the Turkish lira is the rising inflation in Turkey. Current data puts this inflation rate at 61.36%, a figure that is compared to the recent 3.2% recorded in the United States.
With this mindset, most Turkish residents have turned to alternative currencies to protect their assets, and Bitcoin has been the investment of choice for many.
Although it was conceived by Satoshi Nakamoto as a currency for transferring value, its scope has expanded over the years and the cryptocurrency can now be found in most companies’ portfolios as a hedge against inflation.
In addition to Turkish residents, MicroStrategy, a business intelligence company, also helps prove this “Bitcoin as a hedge against inflation” thesis through its analysis consistent BTC accumulations.
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Disclaimer: This content is for informational purposes and should not be considered financial advice. The views expressed in this article may contain the personal opinion of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic assumes no liability for any financial losses.
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