Bitcoin hovers below $ 46,000 when 1 BTC crosses 800,000 Turkish Lira for the first time

The weakening of the Bitcoin price is only to be welcomed by those who opted to save lira this week.

Market update

Bitcoin (BTC) is down more than 5% from its previous highs on December 20th as macroeconomic tensions drag into the new week.

Analyst: signs of volatility in late 2021

Data from Cointelegraph Marketplaces Professional and TradingView tracked BTC / USD as it fell below $ 46,000 overnight on Sunday and fell as low as $ 45,787 on Bitstamp.

The pair hit $ 48,300 before a trend reversal set in as Asian stocks started the week sluggish on the coronavirus.

“The US stock market is going to have a pretty bad day today. In addition, the European stock markets will open in the red, ”warned Cointelegraph employee Michaël van de Poppe in his latest YouTube update.

“We are really preparing for some big swings in the last few weeks of the year.”

Like others, Van de Poppe emphasized the power of the US dollar to add friction to risky assets like Bitcoin. With the U.S. dollar currency index (DXY) encountering resistance, Bitcoin struggles to maintain support in a classic negative correlation move.

“What you want to see in a reversal structure is the same as it was in September,” he continued, referring to the $ 40,000 breakout later that month.

Maximum pain for Turkish lira holders

Overall, only the events in Turkey, with little inspiration for Bitcoin traders, have created some sort of silver lining for those who have chosen to diversify into BTC.

Related: Biggest GBTC Drop Ever – 5 Things To Watch For Bitcoin This Week

After President Recep Tayyip Erdoğan gave another interest rate cut, the Turkish lira (test) fell to a new record low of 17.8 against the dollar.

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With a current loss of almost 60%, the recent decline has put the focus back on Bitcoin and other cryptocurrencies as potential hedge against extreme economic policies.

BTC / Checkout topped 800,000 in a record breaking move overnight and doubled in just two and a half months.

To add insult to injury, the lira fell below the Egyptian pound equivalent (EGP) for the first time in history.

Erdogan already has a deep relationship with cryptocurrencies and has taken steps to drive the industry away from Turkish consumers.