Bitcoin price in Nigeria passes $1,250 as Naira surges in value

Author: GTong

The price of Bitcoin varies greatly from country to country. Some specific regions have very high Bitcoin prices. China is a good example. Nigeria is also hyping Bitcoin. Currently, the local Bitcoin price has surged to unprecedented levels. Just yesterday, according to data from the Nigerian Bitcoin Exchange, each Bitcoin has risen to $1,251.18. Considering that the global average price was only $725 at the time, it can be seen that such a high figure is very abnormal.

Bitx is one of the most famous Bitcoin exchanges in Nigeria to date, attracting traders, consumers, and investors from all over the country. What is particularly interesting is that Bitx is currently unable to provide sufficient liquidity to mediate the current large-scale trade. Due to the current low liquidity, the price of each BTC exceeded $1,250 yesterday.

Demand for Bitcoin grows in Nigeria

It’s not uncommon for people to pay a lot more than the normal price to pay the premium, but a difference of up to $500 is unusual. Nigeria isn’t the only country with high Bitcoin prices right now, India has seen the same trend since its government invalidated much of the cash supply. However, the premium in India is much lower, only 10%-20% higher than the global average price.

Different factors affect the instantaneous demand for Bitcoin. As the Naira increases in value against the dollar, its purchasing power also increases, and consumers and investors who find more value in their currency are more eager to spend their money. In addition, they want to hedge against future volatility by investing in alternative financial assets. Bitcoin is an attractive option because it is the best performing asset in recent years.

Another factor to consider is how Nigeria has such a high number of internet users, with recent data showing that Nigeria ranks ninth in the world. This does not mean that there is uptake of digital payments, although the growing demand for Bitcoin proves otherwise.

Even though the Nigerian exchange recorded such high prices, it does not mean that the rest of the world will follow suit. Bitcoin fans would love to see BTC prices break $1,000 again, but it will not happen overnight. However, high prices in India and Nigeria may also push the global average price higher.