The current economic crisis in Turkey has caused a rise in the adoption of cryptocurrency in the country. As a result, the current ask price of Bitcoin on the Turkish P2P networks has surged above $100,000 with the lowest at $64,000. The prices are a result of the 14% plunge of the Turkish Lira.
Bitcoin Price Rises Amid Lira Crash
Bitcoin has once again proved itself to be a suitable hedge against economic risks. Last week, the Turkish president, Recep Tayyip Erdogan discharged the country’s central bank governor, Naci Agbal. In return, the Turkish Lira crashed and Bitcoin price surged on P2P networks.
Data from LocalBitcoins.com reveals that the Ask price for Bitcoin on some exchanges has risen above $100,000. This could be a result of the imbalance between buyers and sellers on the networks as more people rush to acquire Bitcoin.
A similar occurrence happened in Nigeria when the government banned crypto-related activities in the country. In addition to the tough regulation, there was also a higher demand for Bitcoin. This caused a 70% premium on Bitcoin price compared to the global market prices around that time.
More Turks Run to Bitcoin as P2P Market Prices Rise
Naci’s tenure was credited for improving the country’s tight policy stance. He was known to be a proponent of high-interest rates to contain the hyperinflation of the country. However, when he was removed from office by the president the Lira has crashed by 14%.
Turks are now moving to Bitcoin to hedge against the inflationary state of the country’s currency. Hours after the Turkish Lira took a plunge, Google Trends recorded a 566% increase in the number of searches for the keyword “Bitcoin.” According to the data, this represents an all-time high for Bitcoin searches.
Edward Al-Hussainy, an analyst at Columbia Threadneedle, said that the current Lira plunge will cause a huge selloff of assets by investors. As the selling pressure continues to heighten, it will cause a further drop in the currency’s value. As a result, more Turks will run to Bitcoin as a haven to preserve their funds. The country is also looking at regulating the country’s crypto industry.