The current currency crisis in Turkey is being used by the mainstream media to make a comparison between the national currency and the leading cryptocurrency in the market. The latest contribution to this is a demonstration of relatively low volatility Bitcoins (BTC), published by Bloomberg today, on August 13th.
Turkish lira fluctuations compared with those of the Bitcoin (BTC)
Under the heading “Turkey’s collapse is driving the volatility of the lira comparable to Bitcoin,” Bloomberg reveals the full extent of the devaluation of the Turkish currency this year and writes the following:
The 10-day fluctuations of the Turkish lira relative to the US Dollar now exceed those of Bitcoin (BTC) in the midst of the escalating currency crisis in Turkey.
However, Turkey citizens turned to Bitcoin (BTC) for investment
Turkey has seen an increase in consumer interest in Bitcoin (BTC) since the lira, which has been depreciating against the US Dollar since January, fell to unprecedented lows within a brief time due to various geopolitical factors.
According to data from Google Trends, the Turkey residents’ interest in Bitcoin (BTC) increased significantly in August, while local cryptocurrency exchange platforms experienced a trading volume increase of over 150 percent, this week alone.
The situation of cryptocurrency is not yet evident in Turkey
While legislators carry out capital controls, the status of cryptocurrency in the country remains uncertain, in general. Despite Turkey’s official position that Bitcoin (BTC) is not compatible with Islam, local cryptocurrency exchange platforms have the full support of the Landesbanken, as an article released by Forbes reported earlier this week.
The markets in Turkey have seen rising volatility for some time, while operators such as BtcTurk Bitcoin are currently trading at prices with around $500 more per BTC than on the other leading foreign cryptocurrency exchange platforms.
This trend could continue, some analysts indicated, if the country’s economic situation does not stabilize and the Turkish lira doesn’t surge.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.