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Google searches for bitcoin grew exponentially in Turkey following a sudden wave of economic uncertainty and volatility in the region.
The news comes after Turkey’s President Erdogan ousted the country’s central bank head, Naci Agbal, on March 22. According to data sourced directly from Google Trends, interest in bitcoin spiked over 500% around the same time the lira nosedived by 15%.
Turkish Lira Turns Bearish Overnight
The latest hike brought interest rates up by 200 basis points to 19%. Even though the lira has benefitted from a series of interest rate hikes, Turkey's current President is a fellow critic in this regard. At one point Ergodan stated he was “absolutely against” high interest rates in January 2021, believing it would cause inflation.
Even though the series of interest rate hikes have treated the lira well, Turkey’s current President is a fellow critic. Ergodan stated that he is “absolutely against” high interest rates, believing that it causes inflation, as recently as January 2021.
Turkish lira appreciated considerably against the US dollar in the same period. When the lira collided with the USD as low as 8.49, the lira recovered under the previous chief to 6.94.
Since November 2020, the central bank has raised interest rates from 10.25% to 19%. At the height of investor panic, the dollar gained 15% against the lire. ?? Despite bitcoin's reputation as a hedge against bad monetary policy, that viewpoint has become even more plausible of late. In contrast, bitcoin reached a valuation of $1 trillion in 2021, when gold values had seen substantial pullbacks since 2020.
While traders and investors sided with speculative and high-growth stocks, the cryptocurrency market remained strong while nation-states affected by the crisis are also amongst the biggest users of cryptocurrency, with Venezuela trading millions in bitcoin worth each week.
We don't know whether this is a short-term trend or a long-term departure from the lira. Please be aware that all the information contained on our website has been published in good faith and for general information purposes alone.Anything the reader does after reading material on our website happens at their own risk. The following is a list of characteristics of a good .
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Although bitcoin has often viewed as a hedge against bad monetary policy, that viewpoint has been legitimized even further of late.
A Google Trends search shows that interest in the bitcoin surged by over 500% around the same time the Turkish lira sank by 15%. Even as traders and investors pulled their funds from speculative and high-growth stocks, the cryptocurrency market has stayed strong.
Crisis-hit nations are also some of the biggest adopters of cryptocurrency — with Venezuela trading millions worth of bitcoin weekly. Data shows that there is still considerable demand for the cryptocurrency in the region, especially via peer-to-peer modes.
Given that forex and metals are difficult to obtain in many countries, cryptocurrencies like bitcoin offer an instant hedge against falling fiat currencies. In Turkey, P2P exchange Paxful reported an overwhelming increase in new user registrations over the past 12 months.
It is even more concerning that the new central bank governor has echoed the same sentiments in recent weeks.Since November 2020, interest rates have risen from 10.25% to 19%.
