Turkish residents are searching for Bitcoin after the Turkish Lira dropped approximately 15% within a few days. Turkish President Erdogan ordered the removal of the Head of the country’s central bank last week and the national currency dropped significantly following the news.
The latest data from Google Trends shows that numbers of searches for Bitcoin spiked nearly 500% within few hours after the news of Lira’s crash. The national currency of Turkey dropped from 0.14 to 0.12 against the US Dollar after the removal of the Governor of the Turkish central bank.
There is no clear regulatory framework for crypto companies in Turkey. The country’s Finance Ministry mentioned earlier this month that it is collaborating with regulatory authorities for a clear framework in the country for Bitcoin and other cryptocurrency assets.
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“We share the rising concerns about crypto with the rest of the world. The developments (on crypto around the world) and the state of crypto in Turkey are closely monitored by our ministry. We are collaborating with the Central Bank, Banking Regulation and Supervision Agency, and Capital Markets Board within this frame under the presidency of Deputy Minister,” the Finance Ministry mentioned on Twitter earlier this month.
Inflation and Bitcoin Adoption
Analysts consider Bitcoin as an inflationary hedge against national currencies. BTC’s adoption in counties with high inflation has been on the rise since the start of 2020. Turkish Lira has lost more than 50% of its value against the US Dollar in the last 4 years. The recent drop in Lira has accelerated the demand for the world’s largest cryptocurrency.
BTC currently has a market cap of more than $1.08 trillion and a market dominance of around 60.2%. Bitcoin is gaining popularity among Turkish citizens due to the depreciation in the national currency. Istanbul Basaksehir, a leading Turkish professional football club and last season’s winner of Turkish Super Lig, recently announced a partnership with sports and entertainment-based digital currency, Chiliz to launch a fan token.