Turkey's Currency Crisis Drives Demand for Gold and Crypto

Turkey's worsening financial stress is driving households to seek shelter in gold, Bitcoin, and stablecoins as the lira weakens and inflation remains high.

The Turkish lira has fallen to a historic low of 48.8 per dollar, while the BIST 100 index dropped about 9% over three sessions and trading was suspended due to volatility.

Turkish authorities have ordered the liquidation of 131 investment funds with approximately $18 billion in assets, adding to signs of strain across domestic markets.

The combination of high interest rates at 37% and inflation above 30% is eroding real purchasing power, prompting households to move their savings into assets seen as less exposed to lira depreciation.

Gold remains the most established hedge in Turkey, with purchases of bars and coins reaching a record $4 billion in the first quarter, and Turkish households estimated to hold over $750 billion in gold.