Turkish Lira Slump Contributes to Rise in Turkey"s Daily Crypto Trades to Over One Million
The popularity of cryptocurrencies in economically embattled Turkey has continued to surge with the number of daily trades now surpassing one million, a report has said. This surge in trades has been attributed to the depreciating lira which plunged to a new low against the USD on December 20. Lira Plunges
Cryptocurrency trades in inflation-stricken Turkey have surged to above one million per day for the first time since March, a Reuters report citing Chainalysis and Kaiko data has said.
According to the report, the return to over a million trades per day has come at a time when Turkey’s fiat currency, the lira, has depreciated by almost 40% since September. Prior to the latest surge, cryptocurrency trades in Turkey had previously surpassed the one million per day mark after President Recep Tayyip Erdogan’s unexpected dismissal of the central bank governor on March 22.
The dismissal of then-governor Naci Agbal sparked inflation fears among Turks and caused the lira to plunge by more than 10%. However, after a period of relative stability — which in turn led to reduced cryptocurrency transactions — trades per day went above the one million mark again after the lira’s latest plunge.
As shown by recent data, the lira briefly plunged to a new low of 18.10 for every dollar on December 20, 2021. However, after the government announced a rescue plan, the lira has recovered to 12.50 at the time of writing.
Gold Restrictions a Boon for Crypto
The Reuters report suggested the latest increase in cryptocurrency trades may be linked to restrictions imposed during the year that have made it difficult for Turks to convert the lira to gold. Bitcoin’s race to a new all-time high of more than $69K in November is also said to have contributed to the surge in trades.
In terms of the cryptocurrencies preferred by Turks, the report said bitcoin and the stablecoin USDT are the most widely used coins. This is evidenced by data showing that the TRY/USDT pair is one of the most traded pairs while the fiat currency’s pair with BTC is the 12th most traded.
Reports that Turks are increasingly switching to cryptocurrencies come a few months after the central bank prohibited the use of crypto assets when paying for goods and services. In addition, President Erdogan has said the country is at war with cryptocurrencies. Tags in this story Bitcoin, bitcoin all time highs, Central Bank of the Republic of Turkey, cryptocurrency trades, gold restrictions, Recep Tayyip Erdoğan, Stablecoins, Turkey inflation, Turkish Lira
What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Global Markets, Bitcoin Defy Expectations After Fed"s Hawkish Taper Plan Announcement ECONOMICS | 6 days ago Economist Mohamed El-Erian Says Fed’s Characterization of Inflation as ‘Transitory’ the ‘Worst Call in History’ ECONOMICS | Dec 13, 2021
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFact Checking Media Tries to Debunk Great Reset Theories, Articles Ignite Heated Discussions Over Reboot Agenda Next articleStratos Jet Charters Reveals Crypto Payment Acceptance for Flights via FTX Pay Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNBA Legend Kevin Durant Joins Coinbase to Help Promote the Crypto Exchange’s Brand
American professional basketball player for the National Basketball Association (NBA) Kevin Durant, is joining Coinbase according to a recent report from Bloomberg. According to the report, Durant will appear as “a face of the brand” and will help promote the ... read more.Crypto Lender Nexo Launches NFT Lending Desk, Loans up to 20% for Popular NFTs Indian Crypto Exchange Says 82% of Users Earn Profits This Year, Trading Volume Soars 1,735% Value Locked in Defi Continues to Slide, ETH Defi Dominates by 65%, Solana Transactions Reign Polygon, Reddit Co-Founder"s VC Firm Launch $200 Million Social Media Web3 Fund