NEWSLETTER
Since bottoming around $16,800, bitcoin (btc) has shown resilience throughout 2023, posting gains of over 153% year-to-date and 143% over the past 12 months to outperform major companies. technology.
Despite this impressive performance, the price of the flagship cryptocurrency is still 39% below the all-time high (ATH) against the US dollar reached in November 2021.
Meanwhile, bitcoin continues to reach new ATHs in Argentina, Turkey, Egypt, Nigeria, Lebanon, and Pakistan.
This is what bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin what happens with the citizens of Turkey, Egypt, Nigeria, Argentina, Lebanon and Pakistan.
A combined population of
725 MILLION people
Try to convince them that bitcoin is not useful. Good luck pic.twitter.com/z8poh2C7Wb— Tahini (@TheRealTahinis) December 13, 2023
According to the December 13 post, at one point on December 12, the price of 1 btc bitcoin-price-can-hit-48000-and-new-cryptocurrency-bitcoin-minetrix-set-to-explode-at-ieo/” target=”_blank” rel=”noopener nofollow”>reached ATH against the Argentine peso at 15,176,100.12 pesos. btc was worth 1,202,109.40 Turkish lira, 32,703,517.06 Nigerian naira and 1,280,955.47 Egyptian pounds.
The chart also showed that btc reached ATH against the Lebanese Pound and Pakistani Rupee at 622,548,74.67 Lebanese Pounds and 11,736,063.26 Pakistani Rupees, respectively.
It is worth mentioning that these figures are equivalent to the current price of bitcoin and that the meteoric rise of the cryptocurrency in these countries is due to high inflationary pressures, resulting in the devaluation of their respective currencies.
International Monetary Fund (IMF) data ranks countries' annual percentage change in end-of-period inflation rates and consumer prices.
According to the chart above, the Zimbabwe dollar currently has the highest annual inflation rate: 396%, followed by the Venezuelan bolivar (250%), the Sudanese pound (238%) and the Argentine peso (135%).
The Turkish lira and Nigerian naira ranked fifth and twelfth with annual inflation rates of 64% and 30% respectively, IMF data shows.
For most cryptocurrency investors in these countries, bitcoin has become a reliable store of value and a hedge against soaring inflation.
Many of these countries, including Nigeria and Argentina, have readily adopted cryptocurrencies despite the constant devaluation of their currency.
Nigeria, Turkey and Argentina boast the second, twelfth and fifteenth highest cryptocurrency adoption rates worldwide, according to a September 12 report from Chainalysis.
bitcoin adoption in Argentina is likely to receive a boost following the result of the second round of the presidential elections on November 19, in which pro-bitcoin candidate Javier Milei emerged as the winner.
bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin It is hope for Argentina. Congratulations @JMilei.
—Michael Saylor (@saylor) November 20, 2023
After taking office on December 10, Milei appointed Luis Caputo as economy minister, who announced on December 12 that Argentina was devaluing the peso more than 50% to 800 to the US dollar in an “emergency package” aimed at balancing the budget for 2024. This measure appears to have been supported by the IMF.
NEWS: Javier Milei's Minister of Economy announces a drastic “emergency package” to balance the budget by 2024
The measures include: layoffs of new public employees, cutting government jobs by 34% and canceling all public infrastructure.
So far the IMF approves pic.twitter.com/MHlIZ79Bz8
– bitcoin News (@BitcoinNewsCom) December 13, 2023
The IMF called the measures “bold,” adding that they “would significantly improve public finances in a way that protects the most vulnerable in society and strengthens the exchange rate regime.”
While campaigning, Milei said he would abolish Argentina's central bank if he became president.
Related: bitcoin Derivatives Data Points to Traders' $50K btc Price Target
bitcoin outperforms tech companies
During the extended 2022 bear market, bitcoin fell relentlessly along with tech stocks. According to a review letter from Pantera Capital, an American crypto hedge fund, bitcoin has outperformed all of them except Meta, which has posted year-to-date gains of over 172% versus btc's 162%.
The price of bitcoin fell in line with technology companies last year. This year he has greatly surpassed most.
That is the story of 14 years of bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin – higher lows and higher highs in each cycle.
Our year in review letter: https://t.co/fy9wy78dVG
I will summarize it below:
He… pic.twitter.com/cgvOdHZcBk
– Dan Morehead (@dan_pantera) December 12, 2023
bitcoin rallied in 2023 due to a “vast majority of major events” that were “good news,” and the “blockchain industry made significant and necessary progress,” according to Pantera.
The cryptocurrency coverage firm lists a number of these events, including increased institutional adoption, courtesy of “bitcoin spot ETFs sponsored by big names in traditional finance, such as BlackRock and Fidelity, and blockchain ETF leader Bitwise.” “. The potential approval of bitcoin exchange-traded funds opens a new channel for traditional capital to be injected into bitcoin as “digital gold.”
The letter also notes that the market's ability to trust the US judicial system to be fair has been “reassuring,” citing Judge Analisa Torres' ruling that XRP is not a security and the victory of Grayscale in its lawsuit against the Securities and Exchange Commission regarding its btc ETF application. These point to a favorable regulatory landscape for cryptocurrencies in the US, allowing for greater innovation to occur in the country, the report notes.
In addition to this, the upcoming bitcoin halving event in 2024 is also contributing to the widespread optimism surrounding the flagship cryptocurrency.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
