Market Analysis

Bitcoin hits $49K as BTC price gets unlikely boost from Erdogan’s Turkish lira tinkering

The man who declared "war" on crypto in September helps fuel snap overnight gains.

Bitcoin (BTC) rebounded over 5% on Dec. 21 as a dramatic turnaround in the fortunes of the Turkish lira boosted investors’ confidence. 

Bitcoin hits $49K as BTC price gets unlikely boost from Erdogan's Turkish lira tinkering

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Wishing on a sentiment flip

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD bouncing overnight as the lira shot up as much as 40% against the U.S. dollar.

The move came as Turkey’s president, Recep Tayyip Erdogan, announced sweeping measures to protect consumers and attract lira investors. USD/TRY had previously hit all-time highs of near 19, half of which had occurred in the last two months.

In an ironic twist, Erdogan himself had come out against cryptocurrency in September, declaring Turkey to be “at war” with the industry.

The switch-up fuelled Bitcoin and altcoins alike, with 5% gains mirrored across the major cryptocurrency charts Tuesday.

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

Read more:  Take a look at LabCFTC's latest primer on digital assets

“Good chances we’re done with the correction,” he added in one of various Twitter posts about spot price action on the day.

“Not quite there yet but looking 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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