Bitcoin (BTC<\/a>) fell over 5% from local highs through Dec. 20 as macro tensions persisted into the new week.<\/p>\n Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a>\u00a0tracked BTC\/USD as it fell back below $46,000 overnight on Sunday, reaching lows of $45,787 on Bitstamp.<\/p>\n The pair had hit $48,300 before a reversal<\/a> took hold as Asian stocks opened the week on a limp note thanks to the coronavirus.<\/p>\n \u201cThe U.S. stock markets will be having a pretty bad day when it comes to today. Also, the European stock markets will be opening with red numbers,\u201d Cointelegraph contributor Micha\u00ebl van de Poppe warned in his latest YouTube update<\/a>.<\/p>\n \u201cWe are actually making ourselves ready for some heavy volatility in the last few weeks of this year.\u201d<\/p><\/blockquote>\n Like others, van de Poppe highlighted strength in the United States dollar providing extra friction for risk assets such as Bitcoin. With the U.S. dollar currency index (DXY) facing resistance, Bitcoin is battling to maintain support in a classic inversely correlated move.<\/p>\n \u201cWhat you want to see in a reversal structure is something like we have been seeing in September as well,\u201d he continued, referencing the $40,000 breakout<\/a> at the end of that month.<\/p>\n With little to inspire Bitcoin traders overall, only events in Turkey provided some form of a silver lining for those who opted to diversify into BTC.<\/p>\n Related:\u00a0Biggest GBTC discount ever \u2014 5 things to watch in Bitcoin this week<\/a><\/em><\/strong><\/p>\n Following a fresh commitment to lower interest rates from President Recep Tayyip Erdo\u011fan, Turkey\u2019s national fiat currency, the lira (TRY), fell to new record lows of 17.8 against the dollar.<\/p>\n New week, new lows. #Turkey<\/a> Lira plunges to another All-time low after Erdogan says Islam demands lower rates. Now down 57.4% YTD. pic.twitter.com\/No6j5flgbf<\/a><\/p>\n \u2014 Holger Zschaepitz (@Schuldensuehner) December 20, 2021<\/a><\/p><\/blockquote>\n Taking its year-to-date losses to near 60%, the latest slide brought the focus back to Bitcoin and other cryptocurrencies as a potential hedge against extreme economic policy.<\/p>\n BTC\/TRY passed 800,000 in a record-breaking move overnight, having doubled in just two-and-a-half months.<\/p>\n To add insult to injury, the lira fell below parity with the embattled Egyptian pound (EGP) for the first time in history.<\/p>\n Erdo\u011fan has had a fraught relationship<\/a> with cryptocurrency and has taken steps to banish the industry from Turkish consumers.<\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/b9695c76-484e-407b-98eb-195a2b53e27b.png\")
Analyst: Brace for volatile end to 2021<\/h2>\n
Max pain for Turkish lira holders<\/h2>\n
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