While Bitcoin struggles in global markets, Argentina witnessed a significant surge in cryptocurrency after the victory of Bitcoin advocate Javier Milei in the presidential primary.
On August 14, Bitcoin’s value soared in Argentina, touching 10 million Argentine pesos per BTC, post the announcement of Javier Milei’s primary election win on August 13. Data from CoinGecko reveals this spike, contrasting sharply with the global downturn in cryptocurrency values.
The enthusiasm for Bitcoin in Argentina was palpable as the price rocketed by 21% within an hour on Monday, soaring from 8.4 million ARS to 10.2 million ARS. Bitcoin’s value against the Argentine peso has consistently risen since late 2022, showcasing a monumental increase of over 210% since August 17, 2022. After setting this record, BTC did witness a slight dip and is currently valued at around 9.9 million ARS, a 3% decrease from its peak.
This rapid ascend in Bitcoin’s valuation in Argentina can be largely attributed to Milei’s primary victory. Garnering over 30% of the votes, Milei has emerged as the top contender for Argentina’s upcoming general election in October. Milei’s financial outlook is unambiguous – he proposes dismantling the central bank and advocating for adopting the U.S. dollar as the nation’s primary currency. He perceives Bitcoin as a robust counter to “central bank swindlers” and condemns fiat currencies for enabling politicians to manipulate Argentines with inflation.
Contrastingly, on the global front, Bitcoin is facing a downturn. As of August 16, the cryptocurrency dipped below the significant threshold of $29,000, marking a 3.7% decline against the U.S. dollar since August 14, based on CoinGecko statistics. Over the last month, it has shrunk by nearly 5%.
Argentina isn’t the only country experiencing historic Bitcoin highs due to rampant inflation. For instance, Turkey, grappling with a near 50% inflation rate in July 2023, also recorded soaring Bitcoin values. That month, the cryptocurrency peaked against the Turkish lira, hitting 819,000 TRY for a single BTC, as indicated by CoinGecko data.
