The arrest of Istanbul's mayor Ekrem İmamoğlu led to a drop in the Turkish Lira and a significant surge in BTC/TRY trading on Binance.
İmamoğlu's Arrest Triggers 41.00 USD/TRY Peak
On March 19, 2025, the arrest of Istanbul's mayor Ekrem İmamoğlu caused the Turkish Lira to hit a record low, with the USD/TRY exchange rate peaking at 41.00. The incident triggered immediate market volatility, as the arrest was seen as politically motivated, leading to a 10% drop in the Turkish Lira in a single day. This volatility prompted a notable increase in BTC/TRY trading on Binance.
BTC/TRY Trading Hits Year-High Volume on Binance
The financial markets reacted strongly, with BTC/TRY trading on Binance surging to its highest hourly volume in a year. Public trust in the stability of the Turkish Lira is deteriorating. Arthur Hayes and Raoul Pal commented, highlighting crypto's role as a hedge during currency instability.
Currency Instability Driven by Politics Continues
Historically, political events in Turkey have influenced the currency's stability. In 2022, similar political tensions caused significant depreciation of the Lira, illustrating a repeated pattern. Experts predict continued fluctuations in currency value, suggesting that reliance on cryptocurrency as an alternative store of value could grow in emerging markets facing similar issues.
The instability of the Turkish Lira due to political events again highlights the role of cryptocurrencies as an alternative store of value during currency instability.
