Bitcoin Selling at 36% Premium in Nigeria Post Central Bank’s Banking Ban

By Prashant Jha
Published February 17, 2021 Updated February 17, 2021
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Bitcoin Selling at 36% Premium in Nigeria Post Central Bank’s Banking Ban

By Prashant Jha
Published February 17, 2021 Updated February 17, 2021

Bitcoin price topped $52,000 today to mark a new all-time high, however, the top cryptocurrency is selling at $71,000 on many exchanges in Nigeria selling at a 36% premium post the central bank’s banking ban announced a couple of weeks ago.

Source: Bitcoin Price Map
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The Central Bank of Nigeria blocked banks from offering their service to crypto traders or exchanges in the country making it near impossible for traders to withdraw their funds using the banks. However, Binance, one of the leading global crypto exchanges launched a P2P for Nigerian traders to help them ease their crypto trade.

A recent Nigerian senate meeting that also discussed the recent banking ban believe Bitcoin’s decentralization makes it impossible to regulate and famously added,

“Bitcoin has made our currency almost useless or valueless.”

The Demand For Bitcoin Soars in Nigeria Post Ban

Many governments in the past have tried banning bitcoin but soon realized that it only fueled their crisis as more people jump onto the bandwagon. Nigeria is the latest country to realize that post its Central bank decided to restrict banking services to crypto companies. The demand for Bitcoin post the banking ban seems to have skyrocketed as evident from the high premium prices.

Many have demanded the government to overturn the decision made by the central bank as it would only add to the government’s crisis. Traders would continue to trade Bitcoin on P2P platforms without much hassle, however, the ban would surely fuel black markets as evident from premium price. A similar price premium was seen in Iran when the government had earlier decided to ban Bitcoin trading.

Bitcoin Records Another ATH With Eyes on $65K Short-Term Price Target

Bitcoin after having a quiet January has burst into bullish action again recording new all-time-highs every other day with little no correction. A similar momentum started back on Christmas which saw Bitcoin price move from $24,000 to $42,000 within 3 weeks gaining nearly $21,000 in 21 days. The top cryptocurrency seems to be gearing up for similar price action as it has managed to break through $50,000 already.

During the early phase of the bull run, there were several debates whether Bitcoin is following the price trends of the 2017 bull run or 2013 one, however as the top cryptocurrency has managed to continue its price growth for almost 4 months without any major pullbacks, many believe Bitcoin is at the start of the bull supercycle rather than a phase.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
1008 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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