The price of Bitcoin has reached unprecedented heights in Argentina following the election victory of pro-Bitcoin candidate Javier Milei in a primary election held on August 13. This remarkable development saw the value of one Bitcoin surge to a surprising 10.2 million Argentine pesos (ARS).
On August 14, an extraordinary 21% jump from 8.4 million ARS within just one hour on the preceding Monday. This dramatic surge is part of a broader upward trajectory, with Bitcoin’s value surging by an astounding 210% against the Argentine peso since the notable date of August 17, 2022.
The political victory of Javier Milei is widely considered a driving force behind the recent surge in Bitcoin’s value in Argentina. Milei supports the abolition of the central bank and the adoption of the United States dollar as the official currency of the country. He positions Bitcoin as a direct response to what he terms “central bank scammers,” highlighting the appeal of the cryptocurrency in countering inflationary pressures.
However, the Bitcoin rally within Argentina contrasts with its global market performance. The cryptocurrency has experienced a decline of 3.7% in value against the US dollar since August 14, reflecting a broader trend of price depreciation.
Interestingly, Argentina is not the sole nation experiencing Bitcoin’s surge to historic levels amidst uncontrolled inflation. Countries like Turkey, where the inflation rate surged to nearly 50% in July 2023, have also witnessed Bitcoin trading at or near its all-time highs. In July, Bitcoin reached an impressive value of 819,000 Turkish lira (TRY) per 1 BTC.
Before the result, on May 10, 2023, the pro-crypto Argentine president, Javier Milei gained popularity among the voters as the election approached. At that time the polls also showed him leading the race. Argentina’s economic challenges were expected to be significant factors during an election, and Milei’s unconventional views and laissez-faire approach to economics and politics set him apart as a candidate who could address the country’s current problems by promoting free markets and limited government intervention.
However, Support for pro-crypto candidates isn’t limited to Argentina, it’s also seen in the US. As crypto becomes more popular, American voters prefer candidates who understand it. Lawmakers use crypto to attract voters by expressing support, and notable figures like Jack Dorsey endorse pro-crypto candidates like Robert F. Kennedy Jr. for the US president.