Bitcoin's year-to-date operation compared to the Brazilian Real coupled with the country's financial woes may help drive demand towards the cryptocurrency.

Co-ordinate to a new written report released May eleven by Delphi Digital titled "The State of Bitcoin", Brazil'due south primal bank lowering its interest rates to 3% and the fact the Real had lost 30% of its value relative to the U.S. dollar could drive abroad investors "who discover the risk-advantage tradeoff no longer bonny" in certain local markets.

Delphi Digital speculated that this potential exodus could pb to a greater push towards Bitcoin (BTC) in Brazil:

"This is not to say that capital flooding out of emerging markets will menstruum correct into bitcoin… simply the sheer size of this potential move could serve as another demand source for BTC, especially if tighter capital controls become more commonplace."

BTC had the best YTD performance compared to the Real — 74% — far exceeding that of the U.S. dollar, coming at at 21.nine%.

Source: Delphi Digital'south "The Land of Bitcoin (2020)"

Brazil'due south mixed relationship with crypto

Though the country's Bitcoin market might exist getting riper for investors, cryptocurrencies in Brazil accept had their share of regulatory challenges and influential critics. 4 companies focused on Bitcoin trading take airtight since 2022. Even the President of the Brazilian Banking Federation has argued that cryptocurrencies are not actually currencies at all.