Bitcoin in Turkey Hits Record Price Levels Against the Lira

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The Turkish lira fell to a new low against the US dollar ahead of a central bank rate decision this week. The move caused Bitcoin prices to hit an all-time high against the local currency.

On July 18, the Turkish lira hit a record high of 27.3 per US dollar, according to data from TradingView. It is currently trading at 26.92 after two months of steep declines.

Bitcoin in Türkiye surges

The move was observed by Michael Saylor, Bitcoin proponent and CEO of MicroStrategy, who shared the chart.

USD/TRY 3 months. Source: Twitter/@saylor

Moreover, the lira has lost about 30% of its value against the greenback since the beginning of this year.

According to Reuters, Turkey’s central bank is expected to raise its key rate by 500 basis points to 20% this week. This is part of its commitment to rein in inflation which is already an astronomical 38.2%

As bad as it sounds, inflation in Turkey hit a two-decade high of 85.5% in October 2022.

News that the central bank’s interest rate hike will be lower than market expectations triggers the lira’s depreciation, a trader told Reuters.

The decline in the value of the Lira pushed the price of Bitcoin to new highs on local exchanges. Turkish traders were sharing charts of the new price spike on BTC/TRY, asking how it could be a hedge against inflation.

Bitcoin price in Türkiye. Source: Twitter/@ferdigann01

BTC prices were 820,600 lira on Turkey’s largest exchange, Paribu, at the time of writing. At current exchange rates, this equates to $30,470, which is about 1.3% higher than BTC’s global spot prices.

BTC Price Outlook

In global markets, Bitcoin prices are at the same level as this time yesterday, trading at $30,085. It fell to $29,720 in late trading on July 18, but managed to recover the $30,000 level.

BTC/USD 24 hours. Source: BeInCrypto

Nonetheless, BTC pulled back from its Ripple-induced high late last week, dropping 5% since then.

The asset has remained tightly bound to the range for the past four weeks as trading volumes dry up.

A failure to break through resistance at $31,000 three times in the past three months could signal a return to near-term lower levels.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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