After reaching a low of about $16,800, Bitcoin (BTC) has shown remarkable resilience in 2023. It has achieved gains exceeding 153% since the start of the year and 143% over the past 12 months, surpassing many leading tech companies. However, Bitcoin’s current price remains 39% below its November 2021 peak against the U.S. dollar.
In contrast, Bitcoin has been setting new all-time highs (ATHs) in several countries, including Argentina, Turkey, Egypt, Nigeria, Lebanon, and Pakistan. An early December post by a user named Tahini on the X social platform highlighted that BTC reached record highs against several currencies: 15,176,100.12 Argentine pesos, 1,202,109.40 Turkish liras, 32,703,517.06 Nigerian nairas, and 1,280,955.47 Egyptian pounds. Additionally, Bitcoin also hit ATHs against the Lebanese pound and the Pakistani rupee, reaching 622,548,74.67 and 11,736,063.26 units, respectively.
These record values reflect the current price of Bitcoin and are largely a result of significant inflation in these countries, leading to the devaluation of their national currencies.
Data from the International Monetary Fund (IMF) shows varying inflation rates across countries, with Zimbabwe, Venezuela, Sudan, and Argentina experiencing particularly high rates. The Turkish lira and Nigerian naira also face significant inflation.
In these high-inflation environments, Bitcoin has become a popular store of value and a hedge against soaring inflation rates. Countries like Nigeria and Argentina, despite their currencies’ devaluation, are increasingly adopting cryptocurrencies.
According to a Chainalysis report from September 12, Nigeria, Turkey, and Argentina rank high in global cryptocurrency adoption.
Following the November 19 presidential election in Argentina, pro-Bitcoin candidate Javier Milei’s victory and subsequent economic policies, including a significant devaluation of the peso, are expected to further boost Bitcoin adoption. The IMF has labeled these measures as “bold.”
During his campaign, Milei had proposed radical changes like abolishing Argentina’s central bank. Meanwhile, Bitcoin’s performance, even during the extended bear market of 2022, has been notable, with Pantera Capital highlighting its resilience compared to tech stocks. In 2023, Bitcoin’s recovery has been attributed to several positive developments, including increased institutional adoption and a favorable regulatory environment in the U.S.
The upcoming Bitcoin halving event in 2024 is also adding to the positive sentiment surrounding the cryptocurrency.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up