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Bitcoin hits record high in Turkey as inflation soars

EditorAmbhini Aishwarya
Published 11/16/2023, 06:52 AM
© Reuters.
BTC/USD
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Amidst severe inflation and economic instability, Bitcoin has reached a new all-time high (ATH) in Turkey, trading at 1,076,038.99 Turkish Lira (TRY). The cryptocurrency's adoption in the country began during the COVID-19 lockdowns in March 2020, transforming Turkey into a significant player in the global crypto market. Larry Fink, CEO of BlackRock (NYSE:BLK), referred to the trend as a "flight to quality," with citizens seeking alternatives to their rapidly depreciating currency.

The journey to this ATH began with Bitcoin's surge to its first significant milestone of 479,551.90 TRY (USD1 = TRY28.6844) on April 30, 2021. However, by mid-July 2021, the value dipped to 269,146 TRY, reflecting a temporary recovery of the Turkish Lira against Bitcoin. Since December 2, 2022, when Bitcoin was valued at 315,013.22 TRY, the BTC/TRY pair has experienced substantial growth, culminating in today's record value. This represents a cumulative growth of an astonishing 116,185.22%.

Turkey's current inflation rate stands at a staggering 61.36%, starkly contrasting with the U.S.'s rate of 3.2%. The dire economic situation has prompted many Turks to turn to Bitcoin as an inflation hedge—a trend that is further supported by MicroStrategy's consistent accumulations of BTC. Although originally designed by Satoshi Nakamoto as a value transfer mechanism, Bitcoin has increasingly become a popular investment asset for those looking to protect their wealth from inflationary pressures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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