Bitcoin Hits Record Highs Across Multiple Countries

By Aaron Feuerstein February 21, 2024 In Bitcoin, Cryptocurrency
Source: Adobe Stock
  • Bitcoin is trading at USD $52,260, still 24.5% below its all-time high of USD $69,044.77, yet in Japan, it’s trading higher than its previous high in November 2021.​
  • The weakening of local currencies against the US Dollar and negative/ low interest rates have led to Bitcoin reaching new highs in a number of countries.
  • Meanwhile Coinbase experienced significant withdrawals, with over 18,000 BTC (nearly USD $1bn) being moved, marking the lowest Bitcoin reserve for the exchange since 2017.

Bitcoin is currently trading for USD $52,260 (AUD $79,789) which is still 24.5% away from its all-time high (ATH) at USD $69,044.77 (AUD $105,415.55) as per CoinGecko.

However, when we look at other countries, we can see that Bitcoin has already surpassed previous highs. Looking at the Japanese Yen and it becomes immediately obvious. The below chart reveals traders in Japan are handing over ¥7,827,510 per Bitcoin, the previous high was ¥7,659,317 on November 9, 2021 — 0.97% less than today.

BTC/YEN, Jan. 2021 to Feb. 2024, source: CoinGecko

The reasons? The Japanese Yen has weakened against the US Dollar over the past years. At the same time Japan’s negative interest rates mean it’s still better for investors to put their money in riskier investments than to save.

Other countries where Bitcoin has reached never-before-seen highs are Turkey, Egypt, Nigeria and Argentina.

BTC/TRY, Jan. 2021 to Feb. 2024, source: CoinGecko

BTC is also nearing new highs in Chile, where it has reached CLP 50,215,092, only 9% away from the previous high at CLP 55,165,171.

Another currency close to ATHs is the Bangladeshi Taka, where BTC is only 3.3% away from its previous ATH.

Coinbase Bitcoin Outflows Add to Supply Squeeze

Meanwhile, Coinbase, one of the largest crypto exchanges, experienced a notable event as “whales” (large-scale Bitcoin holders) withdrew nearly USD $1bn (AUD $1.52bn) worth of Bitcoin. This withdrawal, involving over 18,000 BTC, led to the lowest recorded Bitcoin reserves for Coinbase since 2017.

CryptoQuant reports the withdrawn Bitcoins were distributed across various new wallets, with individual values between USD $45mn (AUD $68.6mn) and USD $171mn (AUD $260.6mn).

Source: CryptoQuant

As a result of this activity, Coinbase’s public order book’s Bitcoin holdings are now approximately 394,000 Bitcoins, equating to over USD $20.5bn (AUD $31.2bn).

Head of Research at CryptoQuant, Julio Moreno, suggested that the patterns of these transactions—such as the consolidation of inputs into new addresses, each holding significant amounts of Bitcoin (866 or more)—indicate either the transfer of Bitcoin into custody accounts or a mere internal reorganisation of Coinbase’s wallets.

Moreno leans towards the possibility that these movements are indicative of institutional buying, especially since most of the transferred Bitcoins had been dormant since December 2018. This implies a strategic acquisition of Bitcoin by large-scale investors or institutions, reflecting a growing institutional interest in cryptocurrency.

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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