Bitcoin has reached an all-time high in 14 countries, including Turkey, Argentina, Egypt, Pakistan, Nigeria, Japan, and Lebanon, despite trading 25% below its peak of $69,000.
The paradoxical situation underscores the significant depreciation of these nations’ currencies against the U.S. dollar (USD) over the past two years. The global financial market has been highly volatile in the past few years, as the appeal of cryptocurrencies like Bitcoin has increased in these countries as a hedge against economic instability.
For instance, the Lira has seen a dramatic devaluation in Turkey, with the USD/TRY exchange rate escalating from around 7.80 in November 2021 to 31.02 today. Similarly, the Argentine Peso has weakened significantly, moving from approximately 98 to over 838 against the USD in the same period.
You might also like: Spot Bitcoin ETFs log $35.6m in first single-day outflow since January
The shifts illustrate these countries’ broader economic challenges and inflationary pressures, contributing to Bitcoin’s rising prominence as an alternative investment and store of value.
In fourteen countries representing 1B+ people and $7T+ in GDP, Bitcoin is becoming a lifeboat. pic.twitter.com/W2yngQNOrn
— Balaji (@balajis) February 22, 2024
Even Japan, known for its strong economy, the Yen has depreciated from around 104 to 150 against the USD, marking a decline in purchasing power.
Since Bitcoin’s inception, the USD has collapsed against BTC by six orders of magnitude, highlighting the remarkable ascent of cryptocurrency in the global financial landscape. Originally seen as a digital novelty, Bitcoin has become a critical asset for investors seeking refuge from currency depreciation and economic uncertainty.
Read more: England’s Law Commission suggests recognizing crypto as property
