Key Takeaways
- The Turkish lira tumbled following the arrest of the president’s main political rival.
- Political uncertainty drove Turkish citizens to Binance, pushing BTC/TRY trading volumes to new highs.
- The surge in Bitcoin trading highlights the growing use of crypto as a hedge against fiat instability.
The Turkish lira slid sharply on Wednesday after President Recep Tayyip Erdoğan’s government arrested his main political rival, Istanbul Mayor Ekrem Imamoglu, triggering a sell-off in the currency.
The lira plunged as much as 12% to 41 per U.S. dollar before paring some losses, settling above 39 per dollar—still a record low.
The instability spurred a rush to crypto, with Turkish citizens scrambling to exchange lira for Bitcoin (BTC).
Bitcoin/Turkish Lira Pair Hits Record Volume
As the crisis unfolded, Bitcoin trading against the Turkish lira (BTC/TRY) spiked on Binance, hitting record volumes. According to TradingView data, 93 BTC worth of trades occurred within an hour of the arrest—the highest hourly volume in at least a year.
While demand for Bitcoin surged, the lira’s freefall also created distortions in the market.
BTC traded at a steep discount on Binance’s TRY pair compared to Coinbase prices, suggesting that traders were using Bitcoin as a bridge to move money into U.S. dollar-pegged stablecoins like USDT to protect their savings.
Crypto as a Safe Haven in Unstable Economies
Across the globe, cryptocurrencies have increasingly become a refuge in times of financial instability. While Bitcoin’s volatility makes it an imperfect hedge against inflation, its accessibility and liquidity make it a preferred option in crises.
Stablecoins, in particular, have emerged as a more reliable store of value for individuals and even governments facing currency devaluation.
Some countries have explored backing their fiat currencies with crypto, while others have considered launching state-backed digital assets.
For now, in Turkey, the latest market reaction underscores the growing role of crypto as a financial escape route—one that traders and everyday citizens alike are relying on to navigate economic uncertainty.
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