Bitcoin has already refreshed its record highs in some countries while eyeing the same against the U.S. dollar and the euro.
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BTC $70,684 is holding above the technical support of $69,000 today as traders anticipate an eventful week that includes the release of March’s United States Consumer Price Index (CPI) report and a key interest rate decision from the European Central Bank (ECB).
As of April 9, BTC’s price was trading for as high as $71,760 in the U.S. and 66,000 euros in the eurozone, correcting from their respective three-week highs established a day prior.
Interestingly, on the same day, the cryptocurrency established new record highs in some fiat currency denominations.
They include:
- Japanese yen (JPY): The BTC/JPY exchange rate reached 10.99 million yen, the highest to date.
- British pound (GBP): The BTC/GBP exchange rate reached a new record high at around 57,560 pounds.
Why do Bitcoin prices differ across markets?
Bitcoin prices vary across fiat markets due to differences in supply and demand dynamics, varying levels of access to exchanges, regulatory environments and the efficiency of financial infrastructure in different countries.
Market liquidity can also play a significant role in markets where Bitcoin is harder to obtain and prices may be higher. Additionally, currency stability affects Bitcoin prices. In countries with less stable currencies vs. the U.S. dollar, Bitcoin may be considered a safer asset, pushing prices up.
For instance, 47% of consumers in Nigeria and Turkey, where local currencies lost around half of their value against the dollar in 2023, had likely engaged with cryptocurrencies by either using or owning them within the same year, according to a survey listed at Statista.
Global cryptocurrency ownership 2023. Source: Statista
“The dollar is a vampire. It drains the life out of every other fiat currency,” argues Balaji Srinivasan, a Silicon Valley investor and entrepreneur, adding:
“But then Bitcoin flips the dollar. Because since Bitcoin’s inception…USD has collapsed against BTC by six orders of magnitude.”
