Erdogan Rival’s Arrest Causes Lira to Hit Record Low
The Turkish lira hit a record low against the dollar after the arrest of Istanbul mayor Ekrem Imamoglu, a rival of President Recep Tayyip Erdogan. Key points include:
- The lira dropped nearly 41 per U.S. dollar, marking a 10% decline in one day.
- Trading volumes for the bitcoin-lira (BTC/TRY) pair surged on Binance, with 93 BTC traded in one hour, the highest volume in over a year.
- BTC is trading at a significant discount compared to prices on Coinbase when adjusted for the lira's exchange rate.
- Traders may have sold BTC/TRY to invest in dollar-linked assets like USDT.
- The lira has been depreciating since at least 2017, previously trading at 3.53 to the dollar.
Volatility in fiat currency has driven demand for hard assets and cryptocurrencies in Turkey.