Bitcoin hits $49K as BTC price gets unlikely boost from Erdogan’s Turkish lira tinkering
The Turkish lira plummeted to a record low against the US dollar on Friday after President Recep Tayyip Erdogan announced that Turkey would boycott some U.S. goods in retaliation for sanctions imposed by Washington, which he said were “invalid” and aimed at his country’s economic stability, according to Reuters reports. The value of bitcoin has skyrocketed as investors flocked into crypto markets ahead of this week’s big cryptocurrency news announcements – including an update from Coinbase about its new custody solution – suggesting they believe the digital currency is safer than traditional assets like stocks or bonds right now.,
Bitcoin has fallen over the past few months and is now trading at $3,814 after hitting a high of $19,666 on December 17th. However as Turkey’s economic woes continue to worsen so too does bitcoin’s price- until this week that is when Erdogan caused the lira to tumble by 16% thereby increasing BTC prices.
The “ethereum price” is the most popular cryptocurrency and it has seen a recent increase in value. The reason for this is due to Erdogan’s Turkish lira tinkering.
On Dec. 21, Bitcoin (BTC) rose over 5% as the Turkish lira’s fortunes took a dramatic turn for the better, boosting investor confidence.
1 hour candle chart of BTC/USD (Bitstamp). TradingView is the source of this information.
Wishing on a sentimental reversal
BTC/USD bounced overnight, according to data from Cointelegraph Markets Pro and TradingView, as the Turkish lira rose by as much as 40% versus the US dollar.
The announcement came as Recep Tayyip Erdogan, Turkey’s president, unveiled comprehensive steps to safeguard consumers and encourage lira investors. USD/TRY had already reached near 19-year highs, half of which had happened in the preceding two months.
Erdogan had gone out against Bitcoin in September, proclaiming Turkey to be “at war” with the sector, in an ironic twist.
Bitcoin and altcoins also benefited from the transition, with gains of 5% replicated across the main cryptocurrency charts on Tuesday.
Michaal van de Poppe, a contributor to Cointelegraph, was one among the experts who noticed the link.
Today, #Bitcoin is bouncing well. Today, #Ethereum is bouncing even higher.
What is the real reason?
The Turkish Lira has a good bounce.
December 20, 2021 — Michaal van de Poppe (@CryptoMichNL)
“There’s a good possibility we’re done with the correction,” he wrote in one of his tweets regarding the day’s spot price activity.
“The longer we remain here, the more the mood changes.”
The Crypto Dread & Greed Index, a popular sentiment barometer, showed minor respite after the increase, with the mood increasing two points to 27/100, or from “severe fear” to “fear.”
Fear and Greed Index for Cryptocurrencies. Alternative.me is the source of this information.
Analysts are looking for unrealized gains that are disappearing.
Meanwhile, data on hodler activity suggested that a watershed moment was approaching in terms of Bitcoin profitability.
Analyst: Don’t anticipate a retail sell-off to bring Bitcoin’s price down.
BTC at a loss could soon exceed BTC hodled with unrealized profits, according to a report released by tracking site Whalemap. When such crossings occur, historically, upward resumes.
Around 4 million #Bitcoins have been hoarded at prices above $50,000. This is around 20% of the total market capitalization of $870 billion. All of these coins are now depreciating in value. pic.twitter.com/n4dx7NHG8R
December 20, 2021 — whalemap (@whale map)
“We’re not quite there yet, but things are looking bright,” the Whalemap team informed Telegram followers, adding that “the more unrealized losses, the better.”
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The “what is one bitcoin worth” is a question that has been asked by many people. The price of Bitcoin reached $49K in the last 24 hours, but it’s unlikely to be sustained.