Brazil breaks record in volume of Bitcoin transactions with trade of 100,000 bitcoins in 24 hours
Some media claim that the increase in trade in the main cryptocurrency is due to a recent decline in the country’s economy.
Brazil, the largest economy in Latin America, broke a new record when the crypto Brazilian exchanges negotiated more than 100 thousand bitcoins in 24 hours. At the same time, Brazil reported that its economic activity in February fell to the lowest level in the last nine months.
The battle for the supremacy of the Bitcoin market in Latin America reached a new dimension. Cointrader Monitor, a monitoring tool that analyzes the movements of Bitcoin prices in Brazil, announced that Brazilian cryptographic exchanges traded more than 100,000 BTC on April 10, 2019.
This increase in the trading volume of bitcoins coincides with the recent increase in cryptocurrency, exceeding USD $ 5,200 (BRL 20,000). As a result, on April 10, the total amount of the transaction exceeded USD $ 510 million (2 billion BRL).
Economic decline drives Bitcoin
The regulators and the traditional banks have put obstacles in Bitcoin exchanges in Brazil. Several of Bitcoin’s stock exchanges in Brazil, such as Bitcoin Market, have been forced to close their bank accounts because the judges have ruled that traditional banks can cancel the cryptocurrency exchange accounts at will.
More recently, Banco Santander arbitrarily canceled the account of the Bitcoin Max stock exchange. After a dispute in court, a judge rejected Bitcoin Max’s motion to reopen his bank account. However, last February, another judge annulled this decision because Banco Santander had not provided “a prior written notice of the intention to terminate the contract”.
Despite these obstacles that try to stop the development of the cryptographic market, Brazil’s economic reality dictates otherwise.
According to Reuters, in February 2019, the economic activity of the country was the lowest in relation to the last nine months:
The index of economic activity IBC-BR of the central bank, one of the main indicators of the Gross Domestic Product (GDP), fell 0.73% in February, in relation to January. That followed a 0.31% drop in January, a smaller contraction than initially reported.
So many point out that one of the reasons for the growth of the cryptographic market is due to the economic ills of the country. This was expressed by the newspaper The Rio Times:
A drop in the economy is probably the reason for the increase in cryptocurrencies in Brazil.
The volume of transactions in the p2p exchange exchange LocalBitcoins has been increasing throughout Latin America. Mexico, in particular, saw its highest volume of transactions in pesos this week after US President Donald Trump threatened to take drastic measures against remittances from illegal immigrants.
Brazil, on the other hand, has shown a relatively stable weekly volume of around 1.6 million BRL.
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