๐จ THE NEXT BIG CRYPTO LIQUIDITY STORY MAY BE HAPPENING OUTSIDE THE U.S.
Look at what has happened to several major currencies over the past 5 years.
๐ฆ๐ท Argentine peso: -93.5%
๐น๐ท Turkish lira: -83%
๐ณ๐ฌ Nigerian naira: -68.9%
๐ต๐ฐ Pakistani rupee: -39.3%
๐ฏ๐ต Japanese yen: -30.1%
๐ฎ๐ณ Indian rupee: -22.7%
Bitcoin's performance in those currencies has been dramatically different.
BTC/TRY: +1,013.5%
BTC/ARS: +2,933.6%
That doesn't mean currency depreciation automatically sends capital into Bitcoin.
But research does find that domestic-currency depreciation can encourage Bitcoin trading, particularly in emerging markets experiencing exchange-rate instability. ๎จ1๎จ
And Bitcoin isn't the only alternative.
People can move toward dollars, stablecoins, gold, foreign assets or other stores of value.
That's the key distinction.
Currency weakness creates pressure to diversify.
The actual destination of that capital determines the liquidity impact on crypto.
If even a small portion of global savings eventually moves into digital assets, the effect could be meaningful.
Is currency weakness an underappreciated Bitcoin demand driver?