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What led to the growth of Bitcoin this week

FXcoins - What led to the growth of Bitcoin this week

Last week the price of Bitcoin fell to a value of 9 400 USD. But Saturday and Sunday went rapid growth: on Saturday, the price had risen to 9 600 USD, and the Sunday evening performance has risen to a value of 9 800 USD, the percentage rise is equal to 1.50%. Such fluctuations occurred due to the fact that Argentina has imposed restrictions on the purchase of foreign currency.

 

Analysts had noticed the similarity, so that the increase in Bitcoin was triggered by a decree that limited the purchase of foreign currency. After President Mauricio Macri signed a decree, now major exporters to purchase foreign currency and transfer abroad you will need permission from the Central Bank of Argentina. The rest of the buyers have the right to buy foreign currency up to 10 000 USD per month. The law will operate on 31 December 2019.

 

President Macri pointed to the fact that such measures triggered by the crisis in Argentina. The document says the decree is needed for - “closer regulation of trade in foreign currency and strengthen the normal functioning of the economy.” Argentina is in recession: the unemployment rate increasing as well as the debts. Inflation approximately 40% over the last twelve months. Most of the capitalists and legal entities withdrew their savings, people are waiting and fear of default.

 

Prior to the presidential elections that took place in August 2019, has led to the fact that the rate on government bonds and the Argentine peso has fallen considerably down. This influenced the fact that on the trading floors of Argentina, the exchange rate moved significantly higher, than in the whole world. Indicators bitcoin was trading at $ 300 above the average market price, and the exchange, Localbitcoins indicators was trading at $ 1,000 more than the average market price.

02 September 2019

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