Turkish Citizens Flock to Bitcoin as Local Currency Plummets

Turkish residents are flocking to Bitcoin and cryptocurrency trading in the wake of the fresh currency crisis in the country. Meanwhile, the price of virtual currencies continues to slide as the market recorded a $43 billion loss over the course of just five days.

Bitcoin Trading Volume in Turkey Surges

Writing for Forbes, Billy Bambrough reports that there is a significant increase in the cryptocurrency trading volume in troubled Turkey. Cryptocurrency exchange platforms in the country are experiencing an upsurge in demand for their services over the last couple of days.

Koinin, the largest virtual currency exchange bourse in the country, has seen its Bitcoin trading volume go up by 63 percent. Paribu, another Turkey-based platform, has witnessed a 100 percent spike in its 24-hour trading volume.

Unlike countries like Iran, the apex bank in Turkey hasn’t issued a cryptocurrency ban. Thus, local commercial banks are free to do business with crypto bourses in the country. Turkish citizens looking to hedge their wealth against a falling local currency can comfortably use online cryptocurrency exchange platforms based in Turkey. According to a study published in June, Turkey has the highest percentage of cryptocurrency ownership in Europe.

Currency Crisis in Turkey

The spike in crypto trading volume on Turkish exchanges is occasioned by the current currency crisis in the country. A breakdown in the U.S. – Turkish relations have seen the emergence of an economic tussle between the two nations. Disputes over tariffs levied on Turkish steel and aluminum have contributed to a massive 20 percent drop in the value of the Lira – the Turkish fiat currency. The Lira is down by about 45 percent since the start of the year.

Even the best efforts of the government which included a proposed market-calming plan to be implemented today (August 13, 2018), the Lira is still on its downward spiral. Presently, the Turkish fiat currency is more volatile the Bitcoin. Recep Tayyip Erdogan, the Turkish President, has described the situation as a “foreign operation.”

Prices Continue to See Red

The increased trading volume in Turkey is yet to have any significant effect on the health of the cryptocurrency market. Presently, the prices of many virtual currencies are in the red, including Bitcoin. Ethereum is currently trading below the $300 for the first time in nine months.

Over the last five days, the cryptocurrency market has lost more than $43 billion from its total market capitalization. During the weekend alone, the market shed $8 billion from its value.

Do you think the increased trading volume in Turkey will impact the price of cryptocurrency? Let us know your views in the comment section below.

Images courtesy of Coinmarketcap, ShutterStock