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The exchange and financial tension whetted the appetite of Argentines for bitcoin and cryptocurrencies


Bitcoin, the flagship currency of this sector, has risen close to 15% in the last month and recovered positions to exceed US$ 28,000.

Despite its volatility -which increased this week with the Fed's decision on interest rates-, one of the main winners of the latest turmoil was cryptocurrencies.

Bitcoin, the flagship of this sector, has risen close to 15% in the last month and recovered positions to

exceed US$ 28,000 this Friday


Two conjunctural factors in Argentina were added to this increase in international prices:

inflationary escalation and a renewed exchange rate tension.

In this context, the main crypto wallets in the local market saw

an increase in movements and even registered new user registrations.

Consulted by


, the majority acknowledged that the movements registered in the last ten days were less than those generated in the last exchange run in July last year, but that there were

certain "peaks".

Julián Colombo, CEO of Bitso

, explained: "In recent weeks, not only has the price of bitcoin risen, but there has also been an acceleration in the rise in the price of the dollar," he said, adding: "The increase

in the price of bitcoin added to that of the blue dollar led to an increase in activity

on the platform, both in the number of users and in volume traded".

A similar situation occurred

in the

Lemon wallet.

"Among the companies affected by the events in Silicon Valley was Circle, the issuer of the stablecoin cryptocurrency $USDC. It suffered a


(loss of parity) over the weekend since it had 8% of the support of the crypto in the bank. In Lemon it operated normally during the weekend (purchase, sale, exchange, deposits and withdrawals) and

the volume operated in exchange of currencies was multiplied by 9

against the previous weekend, "they explained.

"Faced with this scenario and the fall of various bank shares and Wall Street prices in general, many people saw in bitcoin the potential to be the


store of value and

a decentralized currency

that does not depend on any entity," they summarized.

Many savers see cryptocurrencies as a

way to "protect" themselves

against fear of a new crisis in the "traditional" financial sector.

The Fed's rate hike this Wednesday did not dampen the appetite for crypto.

"In the first weekend we saw

15% withdrawals

, something similar to what happened during the FTX crisis last year," said Manuel Beaudroit, creator of Beloapp, who added that with the passing of days the number of operations it normalized.

The Silicon Valley Bank crisis

The bankruptcy of Silicon Valley Bank (SVB) two weeks ago unleashed

a real crisis

in the international financial sector, which had its counterpart in the crypto ecosystem.

SVB also provided banking services to Circle, issuer of the USDC stablecoin.

The company had approximately $3.3 billion on deposit with the bank, which is equivalent to around 8% of the reserves backing the stablecoin.

Shortly after Circle announced its SVB exposure grade, USDC lost parity, valuing below $1 for the entire post-crash weekend.

This triggered a

systemic liquidation of various positions across the entire crypto ecosystem.

A survey published by Chainalysis indicated that the volume of cryptocurrencies leaving centralized services (CEX) skyrocketed after the start of the crisis, reaching a maximum of US$1.2 billion on March 11. 

Source: clarin

All business articles on 2023-03-24

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