Inflation and Flotation Issues Lead to Violent Rise in Bitcoin Prices in These Countries

The price of Bitcoin has soared in several countries, some of which are facing a staggering decline in the value of fiat currency. Turkey, where Bitcoin prices were 1.3% higher than global Bitcoin spot prices in July, saw its prices rise almost 70% in January, while South Korea's Bitcoin price increased increased by 10.23%.

On March 6, fiat exchange rates fell in Egypt and Turkey as central banks attempted to contain inflation, while cryptocurrency traders in South Korea benefited from tight exchange controls.

How has the fall of the Turkish lira increased the demand for digital currencies?

Inflation in Turkey reached 67.07% last January, dashing hopes of a halt to interest rate hikes. At the same time, the Turkish lira has continued to depreciate by more than 40% against the US dollar over the past year.

Turkish Finance Minister Mehmet Simsek expects inflation to be stable in the coming months. Eight months ago he played The lira has fallen The value of the lira rose to around 1.3%. Simsek said in January that the government was close to... Encryption regulations have been finalized.

At the same time, it was launched Digital currency exchange OKX recently A platform to serve Turkish customers Precisely. The launch included Turkish Lira trading pairs for Bitcoin and Ethereum. Nunes CEO Ray Youssef sees this as a positive development as peer-to-peer trade can solve the problems faced by Egypt and the Global South.

Youssef said: "Poverty in Egypt doubled in one day! Crypto is 100% illegal there. To all the central banks of the world and to all the people of the South, listen carefully: the central banks of your countries are not the only reason for your suffering, the colonial West is attacking them! Cryptocurrencies It is not the enemy, but when they are used on p2p markets, it is the only solution!

seen that Turkey's history of money laundering with digital currencies, authorities could seek to limit foreign investment in local cryptocurrency exchanges. This could help traders offset the weakness in the lira as more Bitcoin trades domestically at a premium to the spot price.

South Korea's Kimchi protects local currency

Another phenomenon has occurred in South Korea, where the government restricts foreign currency inflows into the cryptocurrency market. The so-called kimchi premium in the region increased by 10% following Bitcoin's recent rise, with the asset's price surpassing global prices.

The South Korean government prohibits foreigners from investing in local cryptocurrency exchanges. Additionally, local residents are not allowed to trade Digital currencies To benefit from the local premium, by keeping all the country's cryptocurrencies. As a result, an asset like Bitcoin trading at a premium indicates buying pressure in the local market.

The kimchi bounty took place regularly around Bitcoin market peaks. Earlier this week, Bitcoin briefly topped $69,000 before falling more than 3%, which coincided with a rise in the kimchi premium. eight months ago, Bitcoin was traded eight months ago About 3% higher On Bithumb, Korea's largest exchange, the Korea Premium Index's 14-day moving average was similar to its value at the peak of the 2021 Bitcoin cycle.

Given the recent news, BeInCrypto reached out to Bithumb for comment on the rise in kimchi, but did not receive a response at the time of publication. The exchange is the largest cryptocurrency trading venue in South Korea.