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The Bitcoin all-time high of above $73,000, achieved last April 2024, is on the horizon. The approaching Bitcoin rally coincides with a weakening Nigerian naira that has experienced the worst battering yet against the US dollar.
According to a recent Bloomberg report, the weakening Nigerian Naira suffered the greatest loss of value against the US dollar in 2024 alone, bringing the currency to NGN 1,670.65 against the dollar as of October 28, 2024. The unprecedented decline in the value of the weakening Nigerian Naira has coincided with a 72% drop in US dollar liquidity, which fell to $81 million, recorded as the lowest-ever level in a month, according to Bloomberg.
Among the World’s Worst Performing Currencies
The local Nigerian currency has recorded a cumulative 4.3% plunge since October 15, 2024, which puts the Naira among the three worst-performing local currencies worldwide year-to-date. According to Bloomberg data cited in the publication’s Businessday report, the Lebanese Pound and the Ethiopian Birr were the only other currencies coming below the weakening Nigerian Naira.
The current sad state of affairs has persisted despite the Nigerian authorities punitively cracking down on illegal Forex dealers, but these measures haven’t managed to stop the currency’s decline. The Nigerian Naira has been named among the world’s worst-performing currencies since 2024. As leaders of the West African country lament the woes bedevilling the weakening Nigerian Naira, there’s an observed feeling that the troubles of the local currency could be attributed to the country’s inability to garner sufficient forex to cover its import bill.
Blame on the Government Policies
Nonetheless, there is a ray of hope burning in the hearts of the country’s leadership that the launch of the upcoming Dangote Oil Refinery could play a significant role and help them turn the tables and begin a walk in the right direction as it could reduce the demand for foreign exchange required to buy fuel. According to the country’s president, Bola Tinubu, his government’s decision to prioritize purchasing locally refined fuel using the weakening Nigerian Naira should help stabilize the struggling currency.
Tinubu recently observed that cost and revenue adjustments would be made in the oil sector to ensure the country doesn’t go back to the old way of doing things. The ongoing weakening of the Nigerian Naira has led to unprecedented inflation that surpassed 34.19 percent last June, further increasing Nigerians’ cost of living. Most young Nigerians have consistently pointed an accusing finger at the government’s economic policies and recently turned to street demonstrations to express dissatisfaction.
Optimism Surrounds the Upcoming US Elections
Meanwhile, a report by Coin Metrics showed that the Bitcoin all-time high achieved last March approached on Tuesday when BTC approached $73,000, just a few days before the highly anticipated US presidential elections. Bitcoin’s price recently ascended to $73,601.59, the highest level since March 14, when the king of cryptocurrencies managed the highest record ever. Bitcoin’s all-time high could have been triggered by several short liquidations that increased the price of cryptocurrencies.
Traders and investors have keenly watched as the return to reach and surpass the Bitcoin all time high has continuously become slippery throughout 2024. BTC has been tightly confined between the $55,000 and $70,000 levels, wrestling the $70K resistance level several times this year. A great deal of optimism has been built around the upcoming US elections, besides Bitcoin benefiting greatly from the emerging Bitcoin ETF market and the Federal Reserve rate policy decision expected on November 7, 2024.
Conclusion
As the market anticipates reaching and surpassing the Bitcoin all-time high, the crypto industry waits with bated breath for the outcome of next week’s US presidential elections. The reason surrounds former President Donald Trump’s continual dalliance with the crypto sector at a time when Democratic candidate Kamala Harris has remained somewhat muted on the crypto subject. Some experts view the outcome of the upcoming elections as a major catalyst that could help achieve and exceed the Bitcoin all-time high.
