Turkish Lira Crisis: Gold Proves Safe Haven, Bitcoin Fails
Turkey's economic crisis has pushed the lira to its lowest historical level, prompting the Istanbul Stock Exchange to suspend trading and Ankara to order the liquidation of 131 investment funds worth $18.3 billion.
Gold has proven a safe haven for Turks, with households and businesses holding $600 billion in gold outside of banking systems, plus $80 billion held in banks. The Turkish central bank refers to this as 'gold under the pillow,' indicating a long-standing tradition of hoarding gold during times of economic uncertainty.
BTC has not been as fortunate, experiencing significant price fluctuations and losing over 7% in value over two days due to a Fed decision. In fact, September is statistically BTC's worst month since 2013, with an average loss of 3%. This trend is attributed to the correlation between BTC and the Nasdaq hovering around 0.88 for the year.