Imamoglu’s Arrest Triggers Lira Plunge, Surging Bitcoin Trading on Binance
After the arrest of Istanbul’s mayor Ekrem Imamoglu, the Turkish lira hits an all-time low, causing a jump in Bitcoin trading volumes on Binance.
Political upheaval in Turkey sent BTC-TRY volume surging on Binance
Key Points:
- The Turkish lira fell to a record low against the dollar following the arrest of Istanbul mayor Ekrem Imamoglu, a rival of President Erdogan.
- This incident resulted in a surge of trading activity in the bitcoin-lira pair on Binance.
- The lira has struggled for years, resulting in increased interest in hard assets and cryptocurrencies.
The Turkish lira plummeted to a historic low after the unexpected arrest of President Recep Tayyip Erdogan’s adversary and Istanbul mayor Ekrem Imamoglu. Translation: The Turkish lira fell to a historic low following the surprise arrest of President Recep Tayyip Erdogan’s rival and Istanbul mayor Ekrem Imamoglu.
The currency dropped nearly 41 per U.S. dollar, marking a 10% fall in a single day. The volatility triggered a significant increase in trading volumes for the bitcoin-lira (BTC/TRY) pair on the leading cryptocurrency exchange Binance.
Continued Story:
Imamoglu’s Republican People’s Party (CHP) labeled the arrest as an attempt to undermine the democratic choice of the populace. The party was preparing for primary elections next week, where Imamoglu was anticipated to be the main candidate for president.
On Binance, the BTC/TRY pair reported trades of 93 BTC between 7:00 and 8:00 UTC, the highest trading volume observed in over a year.
However, when considering the lira’s exchange rate, BTC was available at a significant discount compared to prices seen on Coinbase (COIN).
Traders may have opted to sell BTC/TRY to invest in dollar-pegged assets like USDT, the prevailing stablecoin. CoinDesk reached out to Binance seeking clarification on the situation.
Currency fluctuations are commonplace in Turkey, motivating a considerable demand for hard assets such as gold, as well as alternative assets like stablecoins and cryptocurrencies. The lira has steadily depreciated since at least 2017, when it was valued at 3.53 to the dollar.
