Bitcoin Is Hitting All-Time Highs Around the World
While bitcoin remains shy of its November 2021 all-time high in U.S. dollar terms, it has already breached record highs in local currencies in many markets around the globe.
Bitcoin's Record Highs in Global Markets
Bitcoin has reached all-time highs in numerous markets worldwide, surpassing its previous record in local currencies. Although it has yet to reach its November 2021 peak in U.S. dollar terms, it has achieved significant milestones in various economies.
The U.S. dollar index (DXY) has experienced a 10.7% increase since November 2021, leading to devaluation in many global currencies. Prominent countries where bitcoin has reached new highs include China, Japan, the U.K., India, as well as developing markets such as Argentina, Turkey, and Egypt.
Aurelie Barthere, an analyst in Nansen, notes that the exceptional growth of the U.S. economy compared to Europe, the UK, and Japan has bolstered the strength of the U.S. dollar. However, weak consumption and housing data in the U.S. pose uncertainties for the future relationship between the DXY and crypto prices.
Japan's Fiat Devaluation and Bitcoin's Surge
Japan has experienced a substantial decline in the value of the yen, resulting in bitcoin reaching a record price in the country even prior to recent price surges. The Japanese government's deliberate devaluation of the yen has led to increased liquidity flow into bitcoin as the fiat currency weakens.
March Zheng, Managing Partner of Bizantine Capital, explains that the depreciation of the yen has influenced the rising popularity of bitcoin among Japanese investors. The weakening fiat currency has prompted individuals to seek alternative investment options.
These developments in Japan highlight the interplay between government monetary policies, fiat currency devaluation, and the attraction towards cryptocurrencies like bitcoin.
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