Despite falling short of its peak in US dollars, Bitcoin is reaching new highs in local currencies including those of China, Japan, the UK, and India.
New Heights in Local Currencies
The rise in the US dollar index (DXY) highlights the devaluation of many global currencies, propelling Bitcoin to new highs in these regions.
The devaluation of the Japanese yen and government policies have led to a significant increase in Bitcoin’s value in the country.
The US economy and its currency have enjoyed relative strength in recent years. While Bitcoin remains below its November 2021 all-time high in terms of US dollars, it has already surpassed record highs in the local currencies of many markets around the globe.
The US dollar index (DXY) has risen by 10.7% since November 2021, indicating that many currencies worldwide have lost value. Among the countries where Bitcoin has reached new highs in local terms are economic powerhouses such as China, Japan, the UK, and India, as well as emerging markets like Argentina, Turkey, and Egypt.
Japan, for example, has been a particular weak case, with a 24% drop in the yen meaning that Bitcoin reached a record price in this country well before the strong surge this week that saw the price of Bitcoin skyrocket.
The Japanese government devalued the yen, and liquidity flowed into Bitcoin as their fiat currency weakened.
March Zheng, Managing Partner at Bizantine Capital
