Bitcoin and Ethereum were doing really well in the past few days. Both were trading near their all-time highs and were pushing to new heights every day. But recently, the Bitcoin and other cryptocurrencies ban in Turkey had a serious impact on their price. Markets are in the red, and almost all currencies have seen a price decline. And the most significant of which was the 15% crash in a matter of hours for both Bitcoin and Ethereum. Bitcoin made a low of $52,885, and Ethereum made a low of $2042 as this happened.
Crypto ban in Turkey affects Bitcoin and Ethereum
We knew it will happen, and now we have seen it. Tukey has banned cryptocurrencies in the country, and the ban will be active from 30th April. The government says that this ban is to protect its citizens from the losses that could be caused by dealing with crypto. But we all know it’s more than that. The government probably doesn’t want to miss out on the monopoly they have over the currencies in the country. This way, they can control market demand and make sure that the economy doesn’t crash. This step by the government also goes in line with Ray Dalio’s statement that the government is likely to crack down on cryptocurrencies.
As the ban happened, we speculated that the impact it would have wouldn’t be much. But as of now, the price of Bitcoin and Ethereum has dropped by more than 10% and 11% respectively. Even other altcoins have significantly dropped in price as the news of the ban surfaced. Turkey’s decision to ban crypto could set off alarms for other countries like India, who were planning to ban crypto for quite some time now.
Why do we need Bitcoin?
Monopoly in the financial sector has stayed for too long and now it’s time to change things. Governments continuously print money and devalue the dollars in the hands of the citizens. Just recently we heard that Biden might pass another $2-$3 trillion stimuli in name of the failing infrastructure of the US. This combined with the other stimulus packages released by the government had a serious impact on the US economy. The inflation rates are off the charts and the dollar is losing its value.
At the same time, the country that banned Bitcoin and other currencies, Turkey, also has a serious inflation problem. According to a report, the inflation rate in Turkey has surpassed 15% making a high at 16%. At the same time, its currency is losing its value faster than ever. It lost 24% value in 2020 and already 10% in 2021. So, for the citizens of the country, the only way to purchase Bitcoin or other coins is through peer-to-peer transactions.
What are your thoughts on the crypto ban in Turkey? And do you think it was the reason that the prices of Bitcoin and other cryptocurrencies crashed? Let us know in the comments below. Also, if you found our content informative do like it and share it with your friends.