Bitcoin hits $ 49,000 as BTC price receives unlikely boost from Erdoğan’s Turkish lira tinkering

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Bitcoin (BTC) rebounded more than 5% on December 21 as a dramatic turnaround in the Turkish lira’s fortunes boosted investor confidence.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingView Wish for sentiment reversal

Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD rebounded overnight as the lira climbed up to 40% against the US dollar.

The move came as Turkish President Recep Tayyip Erdoğan announced sweeping measures to protect consumers and attract investors to lire. The USD / TRY had previously hit all-time highs near 19, half of which was in the past two months.

Ironically, Erdoğan himself spoke out against cryptocurrency in September, declaring that Turkey was “at war” with the industry.

The transition has fueled Bitcoin and altcoins, with gains of 5% reflected in major cryptocurrency charts on Tuesday.

Cointelegraph contributor Michaël van de Poppe was among analysts noting the correlation.

#Bitcoin is rebounding well today. #Ethereum is bouncing even better today.

The real reason?

The Turkish lira rebounds strongly.

– Michaël van de Poppe (@CryptoMichNL) December 20, 2021

“There’s a good chance we’ve completed the correction,” he added in one of the various spot price action Twitter posts that day.

“The longer we stay here, the faster the feeling changes.”

A look at the popular sentiment gauge, the Crypto Fear & Greed Index, reflected modest relief from the upside, with mood rising two points to 27/100 or from “extreme fear” to “fear”.

Crypto fear and greed index. Source: Alternative.meAnalysts sees unrealized gains evaporate

The data covering the behavior of the hodlers, meanwhile, pointed to an imminent recurring watershed moment in Bitcoin’s profitability.

Related: Don’t Expect Retail To Drop Bitcoin Price – Analyst

Posted by monitoring resource Whalemap, it showed that BTC at a loss is expected to overtake BTC soon by being stuck with unrealized gains. Historically, the rise resumes when such crosses occur.

There are around 4 million #Bitcoin priced above $ 50,000. This equates to roughly 20% of the total market cap of 870B. All these parts are currently at a loss. pic.twitter.com/n4dx7NHG8R

– Whalemap (@whale_map) December 20, 2021

“Not quite there yet but looks promising,” the Whalemap team told Telegram subscribers, adding in comments to Cointelegraph that in principle, “the more unrealized losses the better” .

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