On Nov. 23, Bitcoin (BTC) hit a new all-time high in Turkey as the country is currently going through a currency crisis with its lira crashing to a record low of 13.44 to the dollar on Tuesday.
In a historic event for a G20 nation, the Turkish Lira lost over 10% in value for a day, hitting an all-time low after President Erdogan demanded that the Central Bank of Turkey cut rates for a third consecutive month from 19% to 15%.
With the currency’s valuation plummeting at an accelerating rate, Bitcoin (BTC) has hit a new all-time high against the Turkish Lira. This year alone, the leading cryptocurrency has proven to be the best-performing asset against the U.S. dollar and gold.
On Tuesday, BTC/TRY reached 723,329 Turkish Lira on Binance Tuesday, the latest in a series of all-time highs, which have come almost at a non-stop.
According to data from local crypto exchanges, BtcTurk, the platform handled around 661 BTC in volume on its BTC/TRY pair over the past 24 hours.
Turkey is in need of Bitcoin’s potential benefits for the citizens residing in a country with authoritarian leaders likely to pursue short-term political gain through inflationary policies. With domestic inflation rising, real rates will likely collapse while the collapsing currency will only accelerate the trend of inflation and negative real rates.
Commenting on this, Bitcoin Titan, Michael Saylor, CEO of MicroStrategy, said last week:
“Bitcoin is hope for Turkey. The currency has lost a third of its value since March and declined for nine consecutive years. Conversion from TRY to USD will merely slow the collapse, while adoption of BTC will reverse the damage & revitalize the economy.”
In April, Erdogan’s government banned cryptocurrencies to be used as payments in but owning them as a store of value is legal at least for now.