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Why has Bitcoin price hit new all-time highs in Turkey, Egypt, Nigeria and Argentina?

Why has Bitcoin price hit new all-time highs in Turkey, Egypt, Nigeria and Argentina?

Since bottoming around $16,800, Bitcoin (BTC) has displayed resilience throughout 2023, posting over 153% gains year-to-date and $143% over the last 12 months to outperform major tech companies.

BTC/USD Daily Chart. Source: TradingView

Despite this impressive performance, the flagship cryptocurrency’s price is still 39% below the all-time high (ATH) level reached in November 2021.

Meanwhile, Bitcoin continues to hit new ATHs in Argentina, Turkey, Egypt, Nigeria, Lebanon and Pakistan.

According to the Dec. 13 post, at one point on Dec. 12, a single Bitcoin has reached ATHs against the Argentine peso at 15,176,100.12 ARS. BTC was worth 1,202,109.40 Turkish liras (TRY), 32,703,517.06 Nigerian nairas (NGN), and 1,280,955.47 Egyptian pounds (EGP).

The chart also showed that BTC has reached ATHs against the Lebanese pound and the Pakistani Rupee at 622,548,74.67 LBP and 11,736,063.26 PKR respectively.

It is worth mentioning that these figures are equivalent to the current price of Bitcoin.

It is worth noting that the meteoric rise of Bitcoin in these countries is due to high inflationary pressures, resulting in the devaluation of their respective currencies.

Data from the International Monetary Fund (IMF) ranks countries’ annual percentage change in inflation rates and end-of-period consumer prices.

Inflation Rates Per Country. Source: IMF

According to the chart above, the Zimbabwean dollar currently has the highest annual inflation rate at 396%, followed by the Venezuelan bolivar (250%), Sudanese pound (238%) and the Argentine peso (135%).

The Turkish lira and Nigerian naira came in fifth and 12th with annual inflation rates of 64% and 30%, respectively, IMF’s data shows.

For most crypto investors in these countries, Bitcoin has become a reliable store of value and a hedge against rocketing inflation.

Many of these countries including Nigeria and Argentina have been readily adopting cryptocurrencies despite the steady devaluation of their currency.

Nigeria, Turkey and Argentina boast the second, 12th and 15th highest rates of cryptocurrency adoption worldwide, according to a Sept. 12 report by Chainalysis.

Argentina’s Bitcoin adoption is likely to get a boost following the…

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