As 1 BTC reaches 800,000 Turkish lira for the first time, Bitcoin sways below $46K.

 As 1 BTC reaches 800,000 Turkish lira for the first time, Bitcoin sways below $46K.

Bitcoin's price drop is likely only welcomed by those who picked it over lira as a safe haven this week.

As macro tensions lingered into the new week, Bitcoin (BTC) lost over 5% from local highs through Dec. 20.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Analyst: Brace for volatile end to 2021

Data from TradingView tracked BTC/USD as it fell back below $46,000 overnight on Sunday, reaching lows of $45,787 on Bitstamp.

The pair had hit $48,300 before a reversal took hold as Asian stocks opened the week on a limp note thanks to the coronavirus.

“The U.S. stock markets will be having a pretty bad day when it comes to today. Also, the European stock markets will be opening with red numbers,” Cointelegraph contributor Michaël van de Poppe warned in his latest YouTube update.

“We are actually making ourselves ready for some heavy volatility in the last few weeks of this year.”

Van de Poppe, like others, pointed to the US dollar's strength as a source of further friction for risk assets like Bitcoin. In a classic inversely correlated move, Bitcoin is trying to maintain support as the US dollar currency index (DXY) faces resistance.

"What you want to see in a reversal structure is something similar to what we saw in September," he continued, referring to the $40,000 breakout towards the end of the month.

Holders of Turkish liras are suffering the most.

With little to entice Bitcoin traders in general, only events in Turkey provided a ray of hope for those who choose to diversify into BTC.

Turkey's national fiat currency, the lira (TRY), dropped to new record lows of 17.8 versus the dollar as President Recep Tayyip Erdoan reiterated his pledge to cut interest rates.

Taking its year-to-date losses to near 60%, the latest slide brought the focus back to Bitcoin and other cryptocurrencies as a potential hedge against extreme economic policy.

BTC/TRY passed 800,000 in a record-breaking move overnight, having doubled in just two-and-a-half months.

BTC/TRY 1-day candle chart (Binance). Source: TradingView

To add insult to injury, the lira fell below parity with the embattled Egyptian pound (EGP) for the first time in history.

Erdoğan has had a fraught relationship with cryptocurrency and has taken steps to banish the industry from Turkish consumers.

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