Argentines and their Investment Strategy in $BTC
A recent report from the Lemon exchange highlights a unique behavior of Argentine investors in relation to the purchase of bitcoin (BTC). Unlike the global trend, where most investors tend to refrain from buying during price drops, in Argentina it is observed that the days of greatest purchase coincide with the steepest drops in the value of the cryptocurrency.
For example, August 5, known as "Black Monday", marked one of the days with the highest buying activity in Argentina. On this day, the price of bitcoin fell below USD 50,000, after having reached an all-time high of USD 73,000 in March. While other global markets faced panic and liquidations, Argentines took advantage of this drop to accumulate BTC.
This phenomenon can be attributed to a strategy known as "buy the dip," where traders acquire cryptocurrencies during corrections to benefit from a future recovery. Since 2014, bitcoin has shown a compound annual growth rate of over 60%, reinforcing Argentines' confidence in this asset as a store of value.
In addition, the report notes that bitcoin and the USDT stablecoin are the most purchased currencies in Argentina and Latin America. Despite a general drop in bitcoin purchases during 2024, BTC remains the leading cryptocurrency in the region.
Finally, this behavior occurs in a context where the Argentine government has implemented regulatory measures that favor the use and transparency of the crypto market.