Bitcoin breaks through $56,000, but I didn’t expect this country to have a 50% premium

Bitcoin continued its upward trend during the Spring Festival, breaking through the $56,000 mark today! In just 9 days from the first day of the Lunar New Year to now, BTC has risen by 15.4%, and has accumulated a year-to-date increase of about 90.95%, while the S&P 500 index has only risen by 4% during the same period.

The crypto market is a global 24-hour trading market, and there are certain price differences in different places. However, the Nigerian Bitcoin premium is more than 50% of the global market, which is intriguing! According to bitcoinpricemap data, its price is as high as $85,379.

Nigeria implements crypto ban

As Bitcoin ETFs began to test the waters in financial markets of various countries (the world's first and second Bitcoin ETFs were approved by regulators in Ontario, Canada), the Central Bank of Nigeria implemented a ban, warning financial institutions not to enable Bitcoin transactions and even ordered financial institutions to close accounts involved in cryptocurrency transactions.

But the ban has failed to stop the boom in cryptocurrency trading, with statistics showing that the current Bitcoin premium in Nigeria is 51.91%, while a few days ago it was only 36% higher than the global market price.

Nigeria’s BTC premium is several orders of magnitude higher than other countries, with South Africa ranking second with a premium of 2.98%, while Malaysia and Indonesia rank third and fourth with premiums of 2.73% and 2.17% respectively.

Peer-to-peer trading explodes in Nigeria

The issuance of the ban has made P2P trading a central method in Nigeria.

Growth in the world’s second-largest P2P cryptocurrency market has barely been hampered, with peer-to-peer trading platforms seeing volumes soar, industry giants devising ways to cater to the booming Nigerian market and peer-to-peer transactions between users exploding.

Other platforms have launched an Express mode, under which traders who have completed KYC will be allowed to exchange cryptocurrencies for the Nigerian currency Naira (NGN) with zero transaction costs.

Other exchanges could follow suit and encourage continued Bitcoin trading in the country by introducing similar services. For Nigeria’s young population, Bitcoin is more than just a digital asset, it has played an important role during the pandemic, facilitating charitable donations.

It is therefore no surprise that despite the central bank’s ban, they have not given up on Bitcoin.

Good fundamentals help boost the Spring Festival harvest

In line with the high premium of BTC in Nigeria, many traditional institutional leaders have changed their attitudes, which is worth pondering.

Microsoft founder Bill Gates said in an interview with CNBC on Thursday that his attitude towards Bitcoin has become neutral. It should be noted that in 2018, the technology giant publicly stated that he would short Bitcoin and asserted that crypto assets have no meaning.

Dan Bin, chairman of Oriental Harbor Investment Management Co., Ltd. and author of "The Rose of Time", said on Weibo, "I have purchased 1% of the Bitcoin ETF fund. Although it is a bit late, I will practice it once I figure it out! I hope to maintain my curiosity about new things!"

"The more Bitcoin rises, the better the fundamentals." Traditional institutional leaders believe this when faced with new things, which shows that the crypto market is still a vast blue ocean!

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Reference: https://cryptopotato.com/bitcoin-price-now-stands-at-80000-in-nigeria/