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Central Bank of Turkey Reports First Payment Transactions on Digital Lira Network

Central Bank of Turkey Reports First Payment Transactions on Digital Lira NetworkThe Central Bank of the Republic of Turkey (CBRT) has conducted the first payment transactions on the test network of the digital lira. The monetary authority intends to proceed with more testing in 2023 and plans to invite banks and fintech companies to join the trials. Turkey to Widen Participation in Digital Lira Project, Focus […]

Bitcoin To Skyrocket by Over 110% if History Repeats, Says Hedge Fund Veteran Mark Yusko – Here’s the Timeline

Bank Holdups and Protests Continue to Rise in Lebanon as Depositors Demand Their Own Savings

Bank Holdups and Protests Continue to Rise in Lebanon as Depositors Demand Their Own SavingsOn Dec. 17, reports detail that residents in Lebanon have been staging sit-ins and protests at banks in order to access their own savings accounts. Since the economic collapse in 2019, Lebanon’s banks froze Lebanese bank accounts, and a number of branches have remained closed indefinitely. The deprivation of wealth has caused a few impoverished […]

Bitcoin To Skyrocket by Over 110% if History Repeats, Says Hedge Fund Veteran Mark Yusko – Here’s the Timeline

Latest Turkey Inflation Rate of 79.6% the Highest in 24 Years — Weakening Lira and Russia-Ukraine War Blamed

Latest Turkey Inflation Rate of 79.6% the Highest in 24 Years — Weakening Lira and Russia-Ukraine War BlamedAccording to the latest data from the Turkish Statistical Institute, the country’s annual inflation rate for the month of July was 79.6%, the highest in 24 years. Rising transportation costs, food and non-alcoholic beverages were some of the product categories that contributed to the overall rate increase. Transportation Costs Rose the Most Turkey’s consumer inflation […]

Bitcoin To Skyrocket by Over 110% if History Repeats, Says Hedge Fund Veteran Mark Yusko – Here’s the Timeline

Turkish Referee Flips Bitcoin at Istanbul Derby Kick-Off, Soccer Authority Launches Probe

Turkish Referee Flips Bitcoin at Istanbul Derby Kick-Off, Soccer Authority Launches ProbeA soccer referee’s decision to toss a bitcoin before the start of a recent match between Istanbul giants Beşiktaş and Fenerbahçe has sparked controversy in Turkey. The country’s football authority is trying to establish why a crypto coin was used for the ritual when that role should have been reserved for the Turkish lira. Bitcoin […]

Bitcoin To Skyrocket by Over 110% if History Repeats, Says Hedge Fund Veteran Mark Yusko – Here’s the Timeline

Bitcoin hits $49K as BTC price gets unlikely boost from Erdoğan’s Turkish lira tinkering

The man who declared “war” on crypto in September helps fuel snap overnight gains.

Bitcoin (BTC) rebounded over 5% on Dec. 21 as a dramatic turnaround in the fortunes of the Turkish lira boosted investors’ confidence. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Wishing on a sentiment flip

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD bouncing overnight as the lira shot up as much as 40% against the United States dollar.

The move came as Turkey’s president, Recep Tayyip Erdoğan, announced sweeping measures to protect consumers and attract lira investors. USD/TRY had previously hit all-time highs of near 19, half of which had occurred in the last two months.

In an ironic twist, Erdoğan himself had come out against cryptocurrency in September, declaring Turkey to be “at war” with the industry.

The switch-up fuelled Bitcoin and altcoins alike, with 5% gains mirrored across the major cryptocurrency charts Tuesday.

Cointelegraph contributor Michaël van de Poppe was among analysts noting the correlation.

“Good chances we’re done with the correction,” he added in one of various Twitter posts about spot price action on the day.

“The longer we stay here, the faster the sentiment flips.”

A look at popular sentiment gauge the Crypto Fear & Greed Index reflected modest relief entering thanks to the uptick, the mood rising two points to 27/100 or from “extreme fear” to “fear.”

Crypto Fear & Greed Index. Source: Alternative.me

Analysts eye evaporating unrealized gains

Data covering hodler behavior, meanwhile, pointed to an impending watershed moment repeating itself when it comes to Bitcoin profitability.

Related: Don’t expect retail sell-off to crash Bitcoin price — Analyst

Released by monitoring resource Whalemap, it showed that BTC at a loss should soon pass BTC being hodled with unrealized gains. Historically, upside resumes when such crossovers occur.

“Not quite there yet but looking promising,” the Whalemap team told Telegram subscribers, adding in comments to Cointelegraph that in principle, “the more unrealized losses, the better.”

Bitcoin Cash Trading Escalates as Second Halving Event Nears

Bitcoin wobbles below $46K as 1 BTC passes 800K Turkish lira for the first time

Bitcoin price weakness is arguably only welcomed by those who chose it over saving in lira this week.

Bitcoin (BTC) fell over 5% from local highs through Dec. 20 as macro tensions persisted into the new week.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Analyst: Brace for volatile end to 2021

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it fell back below $46,000 overnight on Sunday, reaching lows of $45,787 on Bitstamp.

The pair had hit $48,300 before a reversal took hold as Asian stocks opened the week on a limp note thanks to Coronavirus.

"The U.S. stock markets will be having a pretty bad day when it comes to today. Also, the European stock markets will be opening with red numbers," Cointelegraph contributor Michaël van de Poppe warned in his latest YouTube update.

"We are actually making ourselves ready for some heavy volatility in the last few weeks of this year."

Like others, Van de Poppe highlighted strength in the U.S. dollar providing extra friction for risk assets such as Bitcoin. With the U.S. dollar currency index (DXY) facing resistance, Bitcoin is battling to maintain support in a classic inversely correlated move.

"What you want to see in a reversal structure is something like we have been seeing in September as well," he continued, referencing the $40,000 breakout at the end of that month.

Max pain for Turkish lira holders

With little to inspire Bitcoin traders overall, only events in Turkey provided some form of a silver lining for those who opted to diversify into BTC.

Related: Biggest GBTC discount ever — 5 things to watch in Bitcoin this week

Following a fresh commitment to lower interest rates from President Recep Tayyip Erdoğan, Turkey's national fiat currency, the lira (TRY), fell to new record lows of 17.8 against the dollar.

Taking its year-to-date losses to near 60%, the latest slide brought the focus back to Bitcoin and other cryptocurrencies as a potential hedge against extreme economic policy.

BTC/TRY passed 800,000 in a record-breaking move overnight, having doubled in just two-and-a-half months.

BTC/TRY 1-day candle chart (Binance). Source: TradingView

To add insult to injury, the lira fell below parity with the embattled Egyptian pound (EGP) for the first time in history.

Erdogan has had a fraught relationship with cryptocurrency and has taken steps to banish the industry from Turkish consumers.

Bitcoin Cash Trading Escalates as Second Halving Event Nears

‘We are at war’ with crypto, says Turkish President Erdoğan

The Turkish government’s plans for cryptocurrencies draw a stark contrast to its central bank digital currency intentions.

Turkey is eager to become a blockchain hub as a country with one leg in Europe and another in Asia. However, the same passion doesn’t apply to cryptocurrencies, as Turkish President Recep Tayyib Erdoğan reiterated recently.

Erdoğan hosted a question and answer event in Mersin, Turkey with youth from across the country. An attendant referred to the Digital Turkish Lira Collaboration Platform announced last week, and asked if the central bank would embrace cryptocurrencies. He also asked Erdoğan about his opinions on crypto.

“We have absolutely no intention of embracing cryptocurrencies,” answered the president, adding:

“On the contrary, we have a separate war, a separate fight against them. We would never lend support to [cryptocurrencies]. Because we will move forward with our own currency that has its own identity.”

Binali Yıldırım, Turkey’s former prime minister and Ak Party deputy chairperson, followed up by explaining that cryptocurrencies require strict supervision due to their potential risks. “It’s like a sale of a fictive future,” he said.

Related: Turkish central bank taps local tech firms for digital currency R&D

Turkey first announced plans for a national blockchain infrastructure in 2019. Since then, the government and the local authorities have taken a pro-blockchain stance. The government shared plans for a central bank digital currency (CBDC) with tests planned for late 2021.

The Central Bank of the Republic of Turkey made a big step towards its CBDC goals by establishing the Digital Turkish Lira Collaboration Platform with three local technology companies.

However, President Erdoğan’s latest comments on cryptocurrencies mark a possible end for Turkey’s crypto-friendly era, in which several global crypto exchanges like Binance and Huobi set up operations in the country.

Bitcoin Cash Trading Escalates as Second Halving Event Nears

Central Bank of Turkey Expands Research, Prepares to Test Digital Lira on New Platform

Central Bank of Turkey Expands Research, Prepares to Test Digital Lira on New PlatformThe Turkish central bank has established a new platform together with technology stakeholders to further the development of a digitalized version of the national fiat currency. The new collaboration will allow Turkey to focus on expanding research and conducting tests of the prospective digital lira. Turkey Sets Up Digital Lira Collaboration Platform The Central Bank […]

Bitcoin Cash Trading Escalates as Second Halving Event Nears

Bitcoin caught in the crossfire as Turkish opposition leader voices support

After a blanket ban on crypto, Bitcoin is now a talking point for Turkey's politicians.

Shortly after a Friday morning “diktat” from Turkey’s freshly-appointed central bank governor that effectively banned any and all use of cryptocurrency in the country, Bitcoin (BTC) now appears caught in a partisan dustup as a Turkish opposition party leader has voiced support for the digital currency. 

As reported by Cointelegraph, Turkey’s central bank announced on Friday that starting April 30, any cryptocurrency payments and fiat-to-crypto onramp transactions will be rendered illegal. Additionally, “Any direct or indirect usage of crypto assets in payment services and electronic money issuance” will be prohibited.

In a response to the drastic announcement, Turkish opposition party leader Kemal Kılıçdaroğlu came out in support of Bitcoin and cryptocurrency in general in a series of tweets:

“To whom did you consult the crypto decision, O ruler?” he asked, presumably referring to Turkish President Recep Tayyip Erdoğan, who has been referred to as an authoritarian and a dictator. “I will sit down and consult with all the stakeholders of this issue.”

He later noted that after conversations with “stakeholders all day,” he came to the conclusion that crypto was the most likely sector for Turkey to produce “unicorn” companies worth over $1 billion. He added that the announcement demonstrates the ruling party has “no tolerance for young people.”

Beyond its utility as a political talking point, the ban will have a material impact on many Turks. A survey in 2019 found that Turkey is one of the leading countries for cryptocurrency adoption (though that study has come under heavy scrutiny). It sports a lira-pegged stablecoin listed on multiple exchanges, and a local exchange, BtcTurk,  even sponsors football clubs.

The writing may have been on the wall for crypto in Turkey, however. In an effort to gain control over the country’s payments infrastructure, Turkey banned PayPal in 2016. Likewise, plans were underway in 2020 for a government-run digital currency, and perhaps most noxious for Turkey's rulers, BTC hit all-time highs against the lira earlier this year.

Bitcoin Cash Trading Escalates as Second Halving Event Nears