Nigerians Run to Bitcoin Amid Plummeting Naira, BTC Returns to $24,000

Nigerians have turned to Bitcoin (BTC) and Stablecoins after the nation’s currency, Naira, tumbled against the dollar. Citizens of the most populous African nation sought refuge in Bitcoin as the currency went into freefall against the US dollar.

Peer-to-peer exchange LocalBitcoins reported a 258% spike in Bitcoin purchases compared to last week’s data.

The Naira has joined the growing list of currencies currently going through a tumultuous experience due to the ongoing global economic crisis. The single currency has lost significant value against the dollar on the unofficial exchange rate, sparking worries among the citizens.

The panic got stoked last week after the Governor of the Central Bank of Nigeria, Godwin Emefiele, warned that individuals caught converting the local currency to dollar risk jail time if caught, revealing that the institution was closely monitoring the space.

The growing panic prompted many Nigerians to seek out reserve alternatives to protect their funds against inflation. Bitcoin was the most sought-after alternative followed by Stablecoins.

P2P trading platform Paxful recently asserted that citizens of Africa’s largest economy have acquired a significant appetite for crypto in the first half of 2022, explaining:

“Narrowing in on Nigeria, trade volume was over $760M last year, and Nigerian users have climbed over the two million mark. And despite the global financial crisis, Paxful is seeing that peer-to-peer and interest in bitcoin is not slowing down. In the first half of 2022, trade volume in Nigeria reached nearly $400M, showing us that the emerging markets are still hungry for Bitcoin.”

Key Bitcoin Levels to Watch — July 28

Bitcoin resumed an aggressive bullish recovery in the US session on Thursday after bottoming out at $20,725 on July 26. The bullish rebound comes after the benchmark cryptocurrency broke the July 20 descending trendline following an aggressive retest of the line yesterday.

BTC now sits at the edge of $24,000 as bullish trading volume mounts. The primary cryptocurrency could see the $25,000 mark in the coming hours or days as it has the backing of a weaker dollar and a recession-riddled US economy.

Meanwhile, my resistance levels are at $24,000, $25,000, and $26,000, and my key support levels are at $23,000, $22,000, and $21,000.

Total Market Capitalization: $1.10 trillion

Bitcoin Market Capitalization: $454.9 billion

Bitcoin Dominance: 41.4%

Market Rank: #1