After reaching a record-breaking November high, the Bitcoin price in US dollars is in a steep and abrupt downtrend. The top cryptocurrency, however, kept climbing when it was quoted in Turkish lire and hasn’t looked back since.
This is what the results look like The shocking chart of cryptocurrency prices is something you have to witness to be believed. We’ll also explain the background behind the devastating downtrend in TRYUSD.
BTCTRY: A bullish bet against the struggle currencies
In the long history of Bitcoin price actions, every time the cryptocurrency was at its highest, it would then explode off to the next cycle. But the recent macro concerns around the Federal Reserve’s plans to raise rates put any bullish momentum on pause.
Similar Reading: This Bitcoin Morning Star Could Shine A Light On The Bullish Narrative in A Flash| This Bitcoin Morning Star Could Brighten The Bullish Narrative In A Flash
BTCUSD is no longer the most valuable crypto asset, with a market cap of approximately $20,000 and falling by 38%. However, crypto assets don’t only trade against the dollar, much like BTC can trade against altcoins like ETH.
The bitcoin trading with the lira is very different from the dollar. Source: TradingView.com.| Source: BTCTRY on TradingView.com
The following chart shows how Bitcoin can be traded in the Euro, Yen and, in some cases, in the Turkish Lira. On the BTCTRY trading pair, after the all-time high was breached in early November, the bullish trend has yet to take a breather – let alone the steep correction seen in USD terms.
The Turkish Lira Plunge: An Omen for the Dollar
Just the mention of it can cause a flight to the dollars Rate increasesAssets have been destroyed. Turkey is experiencing the exact opposite. Under president Recep Tayyip Erdoğan, Turkey’s central bank has Reduce interest rates by a full percentage point five times since September, sending the nation’s currency into a free fall.
Bitcoin Falls Flat: Examining A Rare Bull Market Corrective Pattern| Bitcoin Falls Flat: Examining A Rare Bull Market Corrective Pattern
In this span, the value of the lira against the dollar has dropped 50%. Also, the inflation rate in Turkey has increased by 21%. Central banks in Turkey have attempted to intervene several times without success, selling off the country’s reserve of USD.
Lira in Free Fall Against USD| Source: TRYUSD on TradingView.com
In response to inflation concerns, Erdoğan has raised the minimum wage by 50%, which Marek Drimal at Société Générale claims “will fuel inflation pressures further, together with the cumulative impact of the lira’s weakness”.
Other, not yet specified measures may also be promised. Will they be successful? One example is the lira, which shows what happens when you have no other levers to draw. Although the United States Federal Reserve still has plenty of shock and awe in its war chests, it’s struggling to balance markets and prevent inflation and currency crashes.
Follow @TonySpilotroBTC on Twitter or join The TonyTradesBTC TelegramGet daily market insight and expert technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured Image from iStockPhoto. Charts from TradingView.com