Javier Milei secured the presidency of Argentina in a surprising turn of events. Initially considered a long-shot candidate, he triumphed after running a dynamic campaign that encapsulated distinctive and often controversial ideas, garnering a majority of the votes.
After the win was pronounced, Bitcoin witnessed a 2.17% rise, reaching $37,374.20, while Ethereum increased by 2.10%, trading at $2,012.48.
The value of cryptocurrencies experienced an increase following the victory of the pro-Bitcoin presidential candidate during the second round. The surge in risk assets was noted as preliminary results were announced amid the country’s struggle with high inflation. Milei has previously voiced support for the largest cryptocurrency, emphasizing its role in returning money to the private sector.
Over the past few years, Argentina’s economy and its 46 million citizens have faced considerable challenges. The inflation rate has soared to nearly 140% year-over-year, and over 40% of the population is grappling with poverty.
These issues were escalating even before the onset of the COVID-19 pandemic, with the analyst Michael Cembalest of JP Morgan Asset Management highlighting in the second half of 2019 that Argentina had defaulted seven times since its independence in 1816.
The country has witnessed the most significant relative standard of living decline globally since 1900 and was teetering on the brink of political and economic turmoil in 2019.
To underscore the magnitude of these challenges, Cembalest pointed out that Argentina’s per capita GDP has barely doubled in over a century.