Hot News

Bitcoin Pokes ATH Against Turkish Lira Following Erdogan’s Latest Rate Cut

Bitcoin is soaring against the Turkish Lira – but not due to increased demand. Rather, low-interest rates are causing the nation’s currency to rapidly decline, lowering its value against Bitcoin, dollars, and other currencies/ assets.

The Turkish Lira Tumbles

As reported by Reuters, the Lira dropped by another 5.6% against the dollar on Thursday. This followed a 100 basis point policy rate cut from the nation’s central bank on the same day.

Since September, the currency has fallen by 47% against the dollar. Worth 8.29 Lira at the start of September, the dollar’s Lira denominated value now stands above 15.6.

President Tayyip Erdogan has implemented an unusual and risky policy of heavy interest rate cuts in the face of rising prices across the country. Its cumulative easing has risen to 500 points since September, with a forecasted policy rate of 13% for the start of 2022. In response, Turks have been selling out of their currency in response, further escalating its crash.

Read more:  Senate Banking Committee Wants Clarity on Stablecoins: Sends Letters to Tether, Coinbase, Circle

Though not nearly at the same scale, the US has also experienced exceptionally high inflation this year. Whereas Federal Reserve Chairman Jerome Powell plans to cut bond purchases in response, Erdogan has instead chosen to raise the minimum wage by 50% in 2022. He still prioritizes lending and exports to stimulate economic recovery.


Inflation now sits dangerously high at 21%. Ipek Ozkardeskaya – senior analyst at Swissquote Bank – criticizes Erdogan’s approach.

“It is a bold move that will certainly cost Turkey a lot of money, and headache. The knee jerk reaction is a heavy selloff in the lira,” she said.

Bitcoin’s Solution

Bitcoin was created as a remedy for the rampant inflation that nations like Turkey experience under fiat currencies. Its fixed supply of 21 million coins grants it immunity to monetary debasement, earning it the name “digital gold.”

Despite being over 25% under its peak in dollar terms, the cryptocurrency just tapped an all-time high against the lira at over 799k Lira per coin.

Read more:  $1.5 Billion Longs Liquidated as Bitcoin Price Tumbled Below $53,000

Google trends data has reflected an increasing interest in cryptocurrencies within Turkey this year.


Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to $1750.

You Might Also Like:

  • Bitcoin Pokes ATH Against Turkish Lira Following Erdogan's Latest Rate Cut

    3 Factors That Could Initiate the Next Bitcoin Price Leg Up

  • Bitcoin Pokes ATH Against Turkish Lira Following Erdogan's Latest Rate Cut

    Over $700 Million Liquidated in a Day as Bitcoin Price Dipped Below $63K

  • Bitcoin Pokes ATH Against Turkish Lira Following Erdogan's Latest Rate Cut

    7x April’s ATH: Bitcoin Transactional Volume Reaches $700 Billion in a Week

Tags: Bitcoin Bitcoin (BTC) Price Turkey

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button