Bitcoin in Argentina reached a fresh high after news broke that Javier Milei, a Bitcoin-friendly presidential candidate, had won a primary election on August 13th. The value of Bitcoin surged to 10.2 million Argentine pesos (ARS) on August 14th, according to data from CoinGecko.
While global cryptocurrency markets have seen a notable slump, Bitcoin in Argentina has experienced a sharp climb. In less than one hour on Monday, BTC rallied 21% from 8.4 million ARS to 10.2 million ARS. This represents a 210% surge in value against the Argentine peso since August 17, 2022.
However, after hitting a new record high, the price of Bitcoin against ARS dropped slightly. At the time of writing, Bitcoin is trading at 9.9 million ARS, down approximately 3% from its all-time high levels.
This recent Bitcoin rally in Argentina is largely attributed to the victory of pro-Bitcoin presidential candidate Javier Milei in the primary election. With over 30% of the votes, Milei is now the front-runner in Argentina’s general election, set to take place in October.
Milei has expressed his support for abolishing the central bank and adopting the United States dollar as Argentina’s currency. He believes that Bitcoin is a response to “central bank scammers,” and argues that fiat currency allows politicians to exploit Argentines through inflation.
While Bitcoin has been on the rise in Argentina, its value has been declining in global markets. Since August 14th, Bitcoin has lost 3.7% of its value against the U.S. dollar, falling below $29,000 on August 16th, according to CoinGecko. Over the past 30 days, the cryptocurrency has dropped nearly 5% in value.
It is worth noting that Argentina is not the only country seeing Bitcoin reach historic highs amid rampant inflation. Countries like Turkey, with an inflation rate of almost 50% in July 2023, have also witnessed Bitcoin trading near its all-time high levels. In July, Bitcoin reached a value of 819,000 Turkish lira (TRY) per 1 BTC.
The rise in Bitcoin’s value in these countries highlights how the cryptocurrency can serve as an alternative store of value during times of economic uncertainty. As Bitcoin continues to gain traction in various regions, its role in shaping the future of finance remains an ongoing topic of discussion.
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