Bitcoin (BTC) has reached an all-time high in Argentina, hitting $48,705.62.
The Argentine peso has plummeted by 99% against the U.S. dollar.
In Argentina, Bitcoin (BTC) has surged to an all-time high, reaching an unprecedented value of ARS 40,378,016 ($48,705.62), according to CoinGecko data. This surge comes amidst the country’s grappling with a severe economic crisis, witnessing the peso’s value plummeting by a staggering 99% against the U.S. dollar since the onset of the currency turmoil in 2018.
The relentless inflation in Argentina has driven its citizens to explore alternative financial avenues, leading to a surge in the adoption of Bitcoin. Rather than opting for the volatile Bitcoin, Argentinians are increasingly turning to black market exchanges known as “crypto caves” to acquire U.S. dollar stablecoins, aiming to evade stringent currency controls and the triple-digit inflation plaguing the Argentine peso (ARS).
Further, the escalating risks of peso devaluation have fueled the next level, as the Argentine inflation rate surged to a 32-year high of 211.4% in 2023, per the latest update from Argentina’s statistics agency, INDEC.
Additionally, Bitcoin’s significant ascent in the Argentine markets mirrors the relentless devaluation of the ARS. At the time of writing, Bitcoin traded at ARS 39,883,465 with a market cap of $944 billion. BTC has soared by over 120% year-to-date.
As the U.S. dollar becomes scarce, more people in Argentina are turning to Bitcoin to protect their money from the falling peso. This signals a notable change in Argentina’s financial dynamics amid persistent economic difficulties.