CryptocurrencyPrice Analysis

Turkish Lira Plummets as President Announces Nationwide Crypto Ban

Crypto adoption is seeing a significant increase over the months as multiple countries come to accept it for the sake of making retail payments. But at the same time, there are those who think that cryptocurrency is bad for the economic stability and growth of their country and hence should be banned. China became the first country to issue a severe crackdown on cryptocurrencies and Bitcoin mining as multiple miners were forced to pack up their operations and leave the region as soon as possible. They found solace in multiple crypto-friendly frontiers and set up their operation there.

Among the countries that don’t appreciate or look brightly at crypto is Turkey. The president of Turkey has issued a severe crackdown against cryptocurrencies and says that Turkey will not host decentralization in any potential way. Only moments after this statement hits the Internet; the Turkish lira is in freefall; its price has plummeted significantly, and the drop continues hours after the statement went live. But as per Bluebay asset management’s Timothy Ash, the insane depreciation of the lira might not be directly linked to the anti-crypto statement of the president but the current monetary policies which Turkey is operating under.

Turkey won’t Accept Crypto

Turkey’s Lira continues to lose its face value against the US dollar as over the week; it has lost more than 40% and about 1000% since 2008. This comes after forex traders rebuild their trust in the Turkish lira after it finds a solid resistance at the 9.8 dollar segment. The whole thing accelerated as President Tayyip made the announcement that he would defend the decision of the Turkish central bank to retain interest rates low despite the fact that the country is falling into long-awaited inflation.

Multiple calls have been made to the Turkish government from various investors that it should deflect from the current course it is embarking on as it has led the economy of Turkey into economic chaos. According to financial officials in Turkey, cryptocurrency or adopting Bitcoin is merely an irrational experiment with no hopes of being successful, and that is why they think that it is best to avoid it.

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