Today we dawn with another dark day for humanity and the international, traditional or cryptocurrency markets. “Black Thursday” it is affecting the Dollar / Bitcoin index in Argentina 🇦🇷, with its value reaching $ 100. While the Coronavirus dem pandemic continues to spread at an exponential rate.
The price of Bitcoin woke up dressed as a bear today, with a gruesome drop of more than 20% that took it at times to $ 5,500.
As expected, the entire crypto market has followed the trend of the main crypto of all, with average falls exceeding 25% in all other altcoins.
However, the effect of the new Coronavirus pandemic not only affects Bitcoin, or the world’s large stock indices. Also, thanks to globalization, to the countries of our region. As is the case in today’s article, being Argentina.
The situation in Argentina
According to official figures, the number of confirmed cases in the country at the end of the world is 19. Noting that there are 2 others confirmed this morning, which are not yet part of the statistics. So the number would be 21.
This makes it the third most infected country in the southern part of the American continent. Only behind Brazil 🇧🇷 with 52 and Chile with 23.
But, unlike these two, Argentina is experiencing a somewhat complicated political – economic – social situation. Noting that it has the second highest inflation in the continent, with more than 50% per year. Only surpassed by Venezuela 🇻🇪.
The phenomenon of inflation, along with other cases such as international over-indebtedness, place the country in a very delicate position.
The Dollar / Peso exchange rate has been skyrocketing in recent days, in part to the devastating effect of the Coronavirus.
He is currently hanging around more than 62 pesos for sale Y 65 pesos for the purchase of 1 US dollar.
While the Argentine stock market index follows the trend of the other markets, infected by panic and measures against the Coronavirus worldwide. Which have the collateral effect of going against international trade.
Meanwhile, what about BTC in the country?
A large number of Argentines have turned to cryptocurrencies to safeguard themselves, not only from rampant inflation, but also from increased controls on capital outflows.
Right now the price of Bitcoin in Argentina is located at 557,986 Weights for purchase and 542,532 Pesos for sale in the Argentine critpo exchange Ripio. While SatoshiTango is currently about 619,548 Weights for purchase and 587,801 Weights for sale.
Highlighting that the international value of Bitcoin (BTC) is around $ 6,000 in large crypto exchanges.
This represents that the Dollar / BTC index is currently in Ripio at $ 91.5 for purchase and $ 88.9 for sale. While in Satoshitango it is about $ 101.56 for the purchase and $ 96.4 for the sale. It is worth noting that these values are changing very rapidly.
The increase in the exchange rate, together with the inflationary phenomenon that seems not to end, have led the Dollar / Bitcoin index to approach, and even exceed, $ 100.
The Dollar / Bitcoin composite index emerges in Argentina as a natural response to the restrictions, placed by the governments on duty for the sale and purchase of the US dollar.
And it is that, intuitively, one would think that Argentines with the objective of avoiding the maximum quotas, imposed by the government on the purchase of dollars, would use cryptocurrencies. But, this is not the case, because as we see the official exchange rate is approximately 62 pesos for sale Y 65 pesos for the purchase of 1 US dollar.