Last week, the price of Bitcoin (BTC) reached a record high in Argentine peso (ARS) terms following persistent inflation in Argentina.
Argentina’s inflation pushes BTC’s price to all-time high
On April 18, the BTC-to-ARS exchange rate crossed over 6.59 million ARS, according to aggregated price data tracked by Google Finance.
Since the peak, the rate has corrected to around 6 million ARS, down 9%, but still up more than 100% year-to-date (YTD).BTC/ARS price performance so far in 2023. Source: Google Finance
Bitcoin’s growth in the Argentine markets coincides with the continuous ARS devaluation. For instance, traders were paying as low as 460 ARS to buy $1 from the black market on April 24 — more than double the official spot rate that pays 220 ARS for the dollar.
FMyA, a United States-based consultancy firm, noted that the Argentine central bank’s reserves have dropped by half to an estimated $1.3 billion since 2019.