Bitcoin Shatters Trading Volume Record on Peer-to-Peer Crypto Platform in Argentina As BTC Trades At 38% Premium
With Argentina facing rising prices and economic turmoil amid heavy capital restrictions imposed by the central bank designed to stablizie the national currency, Bitcoin trading volume has reached an all-time high on peer-to-peer crypto trading platform LocalBitcoins.
While the Central Bank of the Argentine Republic cracked down last week, limiting US dollar purchases to $200 per month and prohibiting all Bitcoin purchases using credit cards, crypto investors and traders turned to LocalBitcoins, where trading volume increased from $14.3 million in Argentine pesos to $16.4 million for the week ending November 2, breaking the all-time high of $15.4 million set in July, according to data compiled by Coin.dance.
With tightened capital controls dampening the movement of fiat in Argentina, Bitcoin is once again trading at a huge premium, equivalent to as much as $2,000 for a single Bitcoin.
“As of [November 4], CoinMarketCap showed Bitcoin prices of $9,238, but at the same time in Argentina, [local crypto exchange] Ripi showed that the bid and ask prices for Bitcoin were 724,135.79 pesos (about $12,160) and 634,025.65 pesos (about $10,647).
With Ripi showing today’s Bitcoin price (759,867.43 pesos, about $12,759) to the Bitcoin price displayed on the CMC ($9,238), Bitcoin is 38% more expensive in Argentina.”
Argentina’s new Peronist administration will assume power on December 10 and is expected to negotiate a deal with the International Monetary Fund to try to mitigate the country’s unsustainable debt.