Bitcoin demand in Argentina surges to highest point in two years

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24 Mar 2024

Argentines continue to be interested in Bitcoin as the peso continues to depreciate in comparison to the US dollar, falling from $0.0049/peso in March 2023 to $0.0012/peso.

According to a recent report, Argentina recently saw its largest demand for Bitcoin BTC tickers down $65,075 in 20 months as a result of people there trying to protect their investments against the continuous depreciation of their national currency, the Argentine peso.

Nearly 35,000 consumers in Argentina bought Bitcoin in the week ending March 10, double the weekly average compared to 2023, according to data collected from cryptocurrency exchange Lemon Cash and reported by Bloomberg on March 20.

Argentina plans to purchase Bitcoin from January 2023 to March 2024. from Bloomberg

One important factor driving the increase in demand is the ongoing decline in

The peso's value fell precipitously over the last year about the US dollar, from $0.0049/peso in March 2023 to $0.0012/peso at the time of writing.

It was pointed out that other platforms were experiencing a spike in demand besides Lemon. Similar patterns were noted by other major exchanges in Argentina, including Ripio and Belo.

As a result of Bitcoin's recent price increase, stablecoin purchases in Argentina decreased from 70% to 60%, according to Manuel Beaudroi, CEO of the digital wallet Belo.

"A user chooses to purchase Bitcoin upon learning that its value is increasing, whereas stablecoin is more practical and frequently utilised for transactions, such as sending money overseas."

Additionally, he stated that Belo has witnessed a "tenfold so far in 2024 compared to the same period last year" spike in Bitcoin and Ether volume.

However, according to a recent article, there may still be demand for stablecoins because Argentines might decide not to buy them on the well-known exchanges in their nation.

According to a story published on February 12 by Cointelegraph, Argentines are purchasing US dollar stablecoins through underground markets, referred to as "crypto caves," to get around tight currency controls and the peso's increasing inflation.

In the meantime, the nation is gradually seeing a rise in the usage of digital currency for certain transactions.