When it comes to Bitcoin, Turkey is a country that is often forgotten. With a population of over 80 million people, it is the 18th most populous country in the world. It also has the 6th largest economy in Europe and is a member of the G20 group of nations.
Despite all of this, Turkey is not a country that is often associated with Bitcoin or cryptocurrency. This is starting to change though, as Turkey has become one of the hottest markets for Bitcoin in recent months.
The reason for this sudden interest in Bitcoin is due to the weakening of the Turkish Lira. The Lira has lost over 30% of its value against the US Dollar this year and this has led to many Turks looking for alternative investments.
Bitcoin is seen as a safe haven asset by many in Turkey and this has led to a surge in demand.
Local Turkish exchanges have seen their trading volumes skyrocket in recent months. BTCTurk, one of the leading exchanges in the country, has reported a 2000% increase in trading volume since January.
This demand has also led to a shortage of Bitcoin ATM’s in the country, as they are being snapped up by investors looking to cash out their Lira for Bitcoin.
Investors should be aware that Bitcoin is currently not recognized as a legal currency in Turkey. The Turkish government recently banned the use of Bitcoin, and it is illegal to buy, sell, or trade Bitcoin in the country. Any transactions involving Bitcoin are subject to legal action, and investors should be aware of the risks associated with investing in Bitcoin or any other cryptocurrency.
It’s not just retail investors who are buying Bitcoin in Turkey either. Institutional money is also flowing into the market.
The Grayscale Turkish Lira Trust, which allows investors to buy into Bitcoin without having to hold it themselves, has seen its assets under management grow from $5 million to $50 million since March 2020.
All of this demand for Bitcoin has led to a surge in price. The BTC/TRY (Bitcoin/Turkish Lira) exchange rate has risen from around 10,000 Lira back in January to over 30,000 Lira today.
This represents a tripling in price and shows just how popular Bitcoin has become in Turkey.
What happens next for Bitcoin in Turkey remains to be seen but there’s no doubt that interest in the cryptocurrency is at an all-time high. With the Lira likely to continue its downward spiral, we could see even more Turks turning to Bitcoin as a way to preserve their wealth.
In recent months, Turkey has become one of the hottest markets for Bitcoin due to the weakening of the Turkish Lira. Local Turkish exchanges have seen their trading volumes skyrocket as investors look for alternative investments outside of the traditional financial system.
The BTC/TRY (Bitcoin/Turkish Lira) exchange rate has risen from around 10,000 Lira back in January to over 30,000 Lira today, representing a tripling in price. What happens next for Bitcoin in Turkey remains to be seen but there’s no doubt that interest in the cryptocurrency is at an all-time high.