Bitcoin has taken an unexpected flight in Argentina following the primary win of Bitcoin-friendly presidential candidate, Javier Milei. Despite the recent global downturn in cryptocurrency value, Bitcoin surged, achieving new highs in the Argentine crypto market shortly after Milei’s primary win on August 13.
The value of one Bitcoin shot up to an imposing 10.2 million Argentine pesos (ARS) on August 14, and despite its global slump, showed an impressive rally of 21% from 8.4 million ARS to 10.2 million in less than an hour on the following Monday in Argentina’s crypto market. The upward trajectory of Bitcoin against the ARS has been consistent since late 2022, and at the time of writing, Bitcoin was trading at 9.9 million ARS, marking a nominal decrease from its record highs.
Interestingly, the recent Bitcoin rally in Argentina is seen in connection with Milei’s successful run in the presidential primaries. Milei, who bagged over 30% of the primary votes, has expressed plans to abolish the central bank and adopt the U.S. dollar as Argentina’s currency. Viewing Bitcoin as a counter-reaction to the “central bank scammers,” Milei believes fiat currency allows for politicians to exploit Argentines with inflation.
But while Bitcoin is enjoying a prosperous moment in Argentina, its global market performance tells a different story. Since August 14, Bitcoin has lost 3.7% of its value against the U.S. dollar, descending below the crucial $29,000 mark on August 16. The cryptocurrency seems to be on a downward slope, with nearly a 5% drop over the last 30 days.
Although the global adoption of Bitcoin still appears to be an uphill battle, its performance in economies dealing with significant inflation is a glimmer of hope for enthusiasts. It’s worth noting that Bitcoin has also recorded near all-time high trade levels in Turkey amidst nearly 50% inflation in July 2023.
However, the viability of Bitcoin is arguable. Could cryptocurrencies potentially become a hedge and refuge during inflationary periods? Or would their inherent volatility and lack of regulatory control deter economies, leading to further downtrends globally? Despite the initial successes, navigating the future of finance will require delicacy, foresight and a keen understanding of shifting economies. As for now, it seems that Bitcoin’s meteoric rise in Argentina is a clear indicator of how political and economic events can shape crypto market trends.
Source: Cointelegraph
