While most cryptocurrency community members speculate when or if Bitcoin will ever top its all-time high against the dollar, the digital asset has already marked an ATH against other government-issued fiat currencies – the Brazilian Real and the Turkish Lira.
Bitcoin Smashes Through BRL ATH
The past several days have been significantly exciting for the cryptocurrency industry, especially for its most well-known representative. Compared to the US dollar, BTC dipped to $11,200 on Friday, but since then, it has been on an impressive ride, resulting in a new 2020 high.
As CryptoPotato reported earlier, BTC pushed above $13,000 and topped at above $13,200. Looking at its price developments from the past few years, it’s easy to spot that this is still $7,000 less than its highest level of nearly $20,000.
Naturally, Bitcoin is compared with the US dollar as the latter is the world’s reserve currency. However, since BTC operates internationally without border limits, it’s compelling to follow its performance against other national currencies.
For example, during the December 2017 boom, one bitcoin cost 69,000 BRL in Brazil. Despite being officially ranked as the world’s ninth-largest economy by nominal GDP, Brazil’s currency has suffered since then.
BRL’s decline in value, combined with Bitcoin’s recent increase, has resulted in a new all-time high. According to data from TradingView, the trading pair BTC/BRL reached 72,000 BRL today.
Bitcoin Sees New High In Turkey As Well
The Turkish Lira is another national currency that has dumped in value lately. The country, led by President Recep Tayyip Erdogan, experienced rising inflation and borrowing costs, resulting in loan defaults in 2018. The COVID-19 pandemic only accelerated its economic decline.
As the virus infiltrated the nation in April, the central bank enhanced its efforts to keep credit flowing through the economy by cutting interest rates from 12% at the end of 2019 to 8.25% in May.
Despite Erdogan’s intentions, the loan growth increased by 40% and even 50% – record numbers not seen since the previous financial crisis in 2008.
Ultimately, this credit explosion, the need for foreign currencies, and the rising imports led to a near 12% domestic inflation increase in July alone.
Amid Turkey’s declining currency, Bitcoin took advantage and marked a fresh ATH in August this year. One bitcoin equaled 83,500 liras at the time.
The situation has only worsened for the TRY since then, while BTC has grown to new highs as described above. The chart below illustrates that BTC/TRY has surged to a six-digit territory at 101,200 TRY per one bitcoin.