Bitcoin has recently experienced a remarkable surge in its price, reaching all-time highs against local currencies in various countries across Asia and South America. On May 21, Bitcoin hit an intraday and six-week high of $71,650, reflecting a substantial 7% increase. According to CoinGecko, this surge brings Bitcoin within a 3.4% range of its all-time high in USD terms, which was recorded on March 14 at $73,738.
The Impact on Local Currencies
The surge in Bitcoin’s price has led to new record highs against different fiat currencies. In Japan, for instance, BTC soared to an all-time high of 11.2 million yen on May 21, surpassing the 11 million JPY mark for the first time. This increase can be attributed to the weakening trend of the Japanese yen against the U.S. dollar in recent months.
In Argentina, Bitcoin reached a peak value of 63.8 million Argentine pesos (ARS) on May 21, slightly exceeding previous highs. The country, facing high inflation rate of 290% and currency devaluation, sees Bitcoin as a valuable alternative. Similarly, in countries like the Philippines, Britain, Australia, Canada, Chile, Colombia, Egypt, Norway, India, South Korea, Taiwan, and Turkey, Bitcoin witnessed surges against their respective local currencies.
Thomas Fahrer commented on these trends, noting the widespread increase in Bitcoin value across various countries.
Analysts’ Predictions and Market Sentiment
Willy Woo, a crypto analyst, pointed out the liquidation of a substantial amount of Bitcoin short positions, hinting at a possible short-squeeze that could drive Bitcoin beyond its all-time highs. Recent reports by Coinglass revealed that in a span of 24 hours, 79,010 traders faced liquidations amounting to $345 million, with the majority being short positions.
Markus Thielen from 10x Research had previously suggested that breaking above $67,500 could pave the way for new all-time highs. Currently, Bitcoin is trading at $70,945, merely $2,500 away from reaching a new peak in U.S. dollars. QCP Capital, a prominent trading firm, has shown positivity towards Bitcoin’s price momentum, forecasting a potential return to $74,000. The firm highlighted substantial buyers acquiring BTC Calls for December 2024, indicating strong confidence in the cryptocurrency’s upward movement.
QCP Capital expressed its optimism, stating, “BTC has since traded back above 66k, triggered by US CPI numbers breaking out of the range across risk assets.”
