Analyzing Bitcoin and fiat trading pairs on centralized exchanges often reveals performance disparities that remain invisible when focusing on global or average prices. It shows how liquidity, geopolitical and economic concerns, and market sentiment affect performance.
Looking at the year-to-date (YTD) performance of dominant fiat pairs, we can see that BTCARS has seen an impressive 98.27% increase. BTCTRY has gained 69.85%, BTCJPY is up 55.01%, BTCEUR has grown by 49.85%, BTCUSD by 45.62%, and BTCGBP by 45.07%.
In contrast, the three-month performance shows BTCARS leading with a 19.64% increase, while BTCEUR, BTCUSD, BTCGBP, BTCJPY, and BTCTRY have all posted negative returns, ranging from -1.16% to -6.50%.
The one-month performance presents a mixed picture, with BTCTRY up by 10.81%, BTCUSD up by 2.97%, BTCEUR up by 2.72%, and BTCGBP up by 2.03%, while BTCARS and BTCJPY have declined by -0.85% and -3.89%, respectively.
The standout performance of Bitcoin against the Argentine peso, especially year-to-date, can be attributed to the country’s severe inflation. With inflation rates exceeding 100% annually, the Argentine peso’s rapid devaluation has driven investors to seek refuge in Bitcoin.
This behavior is consistent with historical trends where citizens of countries experiencing hyperinflation or economic instability turn to crypto as a hedge against their local currency’s depreciation. While the economic and political policies of Argentina’s newly elected president, Javier Milei, have slowed inflation, the demand for Bitcoin remains strong.
Similarly, BTCTRY’s strong YTD performance comes from Turkey’s economic challenges. Turkey has been grappling with high inflation, with recent reports indicating inflation rates surpassing 75%. The Turkish lira’s depreciation has led to increased adoption of Bitcoin among Turkish investors looking to preserve their wealth.
This trend is further supported by the fact that Turkey has one of the world’s highest rates of crypto adoption. Data from Kaiko showed that the Turkish lira trade volume exceeded $10 billion for eight consecutive months, with the cumulative Lira volume reaching $95…
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