Bitcoin reaches record highs in Asia and South America

Bitcoin has reached unprecedented highs against local currencies in several countries across Asia and South America, driven by a significant 7% surge in its price. On May 21, Bitcoin achieved an intraday and six-week high of $71,650, representing a gain of over 7% within a 24-hour period. According to CoinGecko, this positions Bitcoin within a 3.4% range of its all-time high in USD terms, recorded on March 14 at $73,738.

This surge in Bitcoin’s price has led to new record highs against various fiat currencies. In Japan, Bitcoin reached an all-time high of 11.2 million yen during early trading on May 21, surpassing the 11 million JPY threshold for the first time. The Japanese yen has been weakening against the U.S. dollar, depreciating by 10% since the beginning of the year, which has contributed to the rise in Bitcoin’s value in yen terms.

Argentina also saw Bitcoin peak at 63.8 million Argentine pesos (ARS) on May 21, slightly surpassing the previous highs seen in mid-March. Argentina is currently facing high inflation, standing at an astonishing 290%, along with significant currency devaluation over the past few years. This economic instability has driven many Argentinians to seek refuge in Bitcoin, further boosting its value in ARS.

In the Philippines, Bitcoin briefly hit a record high of 4.18 million pesos (PHP) on May 21, surpassing mid-March highs. Similar trends were observed in other countries, including Britain, Australia, Canada, Chile, Colombia, Egypt, Norway, India, South Korea, Taiwan, and Turkey. Industry observer Thomas Fahrer noted these trends on X, highlighting the widespread impact of Bitcoin’s surge.

Crypto analyst Willy Woo, in a recent post on X, emphasized the liquidation of a month’s worth of Bitcoin short positions, suggesting a potential short squeeze beyond the all-time highs. Coinglass reported that within the past 24 hours, 79,010 traders were liquidated, with total crypto liquidations amounting to $345 million, 78.5% of which were short positions.

Markus Thielen, head of research at 10x Research, previously predicted that surpassing the $67,500 resistance level could lead to new all-time highs. Currently, Bitcoin is trading at $70,945, just $2,500 shy of setting a new all-time high in U.S. dollars. Other analysts have also turned bullish on Bitcoin following weeks of consolidation. Leading trading firm QCP Capital forecasts a potential return to the highs of $74,000. In a recent note, the firm observed substantial buyers acquiring 100,000 to 120,000 BTC calls for December 2024, indicating strong confidence in Bitcoin’s upward movement. “US CPI numbers triggered a breakout across risk assets. BTC has since traded back above 66k,” the firm wrote.

Additionally, the increased interest and investment in Bitcoin can be attributed to various macroeconomic factors, including inflation concerns and the ongoing devaluation of fiat currencies. As investors seek to hedge against inflation and preserve their wealth, Bitcoin’s appeal as a store of value continues to grow, driving its price to new heights globally.