Egypt’s Economic Crisis Sparks Bitcoin Price Surge

• The devaluation of the Egyptian pound against the US dollar has caused a surge in the price of Bitcoin against EGP on Binance, reaching a record high.
• The country is facing severe financial difficulties and galloping inflation, which have negatively affected the local currency.
• Factors such as a 2011 revolution, COVID-19 pandemic, and military conflict between Russia and Ukraine have contributed to this situation.

Background

Egypt is yet another country that currently copes with severe financial difficulties and galloping inflation, which have harmed the local currency. The depreciation of the Egyptian pound against the US dollar is the main reason for this development. It is worth mentioning that the valuation is not that high on other cryptocurrency exchanges, such as Coinbase.

Causes

Some experts claim that Egypt’s financial problems started after the bloody 2011 revolution when approximately two million people flooded the streets protesting against President Hosni Mubarak’s reign. Moreover, Egypt entered a turbulent political period in subsequent years due to its inability to sustain a stable government until 2014. Furthermore, factors such as global pandemic (COVID-19) and military conflict between Russia and Ukraine worsened these issues even further.

Impact