Bitcoin price continues to slide despite growing adoption
BTC's fortnightly losses now stand at 16%.
- Bitcoin's market dominance index (DI) has fallen below the 40% mark for the first time in many months.
- HODLers have continued to increase their BTC accumulation efforts during the ongoing dip, data suggests.
- Despite the IMF's repeated warnings, El Salvador has continued to ramp up its Bitcoin adoption efforts.
The last 24 hours have been quite tumultuous for Bitcoin, to say the least. The world's largest cryptocurrency by total market capitalisation rises to a relative high of AUD$85.5k (US$58k) before falling once again and settling around the AUD$77.5k range. At press time, BTC is trading at a price point of AUD$78,309.
And even though these ongoing price corrections have continued to frustrate investors across the globe, residents of Turkey seem to be loving the volatility since the local currency of the region – the lira (TRY) – has continued to plummet, with BTC recently hitting a new all-time high against it.
To elaborate, Turkey is currently facing a massive fiat crisis, with President Recep Erdoğan trying to keep interest rates at an extremely low level. As a result of the recently introduced fiscal policies, the BTC/TRY pair scaled up to an all-time high of 723,329 Turkish lira on Binance yesterday. On the matter, perennial crypto bull and MicroStrategy CEO Michael Saylor tweeted out the following message:
"Bitcoin is hope for Turkey. The currency has lost a third of its value since March and declined for 9 consecutive years. Conversion from TRY to USD will merely slow the collapse, while adoption of BTC will reverse the damage and revitalise the economy."
Bitcoin HODLing on the rise globally
As per data made available by blockchain analytics firm Glassnode, the number of long-term Bitcoin holders – referred to as HODLers – has reached a multi-year high, despite many investors cashing out their short-term profits in recent weeks. The report noted that accumulators have reduced their spending, indicating that they may be looking to "add to their existing positions" rather than exiting them.
Statistically, the combined volume of BTC held by short-term holders is at a multi-year low at the moment — at <3 million BTC — which essentially points that the amount of crypto held by seasoned HODLers is at a relative high, if not at an ATH.
El Salvador residents continue to warm up to BTC
The Central American nation of El Salvador recently saw its dollar-denominated bonds fall to an all-time low, with the metric dipping as low as US$0.644 earlier this week. In its most basic sense, a dollar-denominated bond is a legally-conforming bond issued by a foreign government or a business agency based outside the US. As a result, BTC adoption has continued to climb across the country despite the International Monetary Fund (IMF) continuing to warn residents about the risks of owning crypto.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.