2 November 2024
Bitcoin Tumbles as Turkey Bans Crypto Payments citing risks.
Bitcoin had surged to its all-time high above $64,500 on the day of the Coinbase (NASDAQ: COIN) listing, but in a short span, it retraced partially with a bit of downward pressure. Bitcoin (BTC) tumbled below $61,000 levels after Turkey's central bank banned the use of cryptocurrencies and crypto-assets for purchases.
In legislation published in the Official Gazette, Turkey's central bank said cryptocurrencies and other such digital assets based on distributed ledger technology could not be used, directly or indirectly, to pay for goods and services. This decision could stall Turkey's crypto market that had gained momentum in recent months, as investors joined the global rally in Bitcoin, seeking to hedge against lira depreciation and inflation that topped 16% last month.
However, Bitcoin's price gained momentum and soared to $62,000. At the time of writing, Bitcoin (BTC) is trading for $62,245 with a market cap of $1.163 trillion. Surprisingly, all on-chain indicators believe that Bitcoin's downside from here is limited.
According to CryptoQuant data, the Coinbase premium has turned significantly high, suggesting a more substantial spot buying pressure on the exchange. Meanwhile, a Glassnode report indicates that the BTC bull run has lasted for a much higher period with consistently high trading volumes in 2021 .
The Glassnode report states:
"Bitcoin's change-adjusted transaction volume has hit a new ATH of $49.45 Billion. The previous record $46.68B was set at the 2017 peak during a 67-day stretch of high volume > $15B. This bull has sustained a much longer 121-days with high volume > $15B."
Besides this, the Bitcoin (BTC) number of addresses in profit has also reached an all-time high of over 37 million.
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