According to a recent analysis by Bloomberg, the volatility of the British pound has been almost as high as that of Bitcoin over the past 30 days. The UK economy will continue to face extreme uncertainty in the month ahead. Do Brits now trust bitcoin more than their own currency?
In the context of the current economic situation in Great Britain, investments in Bitcoin are increasing sharply. Today, the high volatility of the British pound seems to be fueling this trend even more.
As BeInCrypto reported last month, more than a third of Britons own some form of cryptocurrency. This market trend is the result of inflation, the rising cost of living and gasoline, and the weakening of the international pound.
Remarkably, Bitcoin, born in 2009, is currently no more volatile than one of the oldest currencies in the world – the British pound.. Bitcoin maximalists have used this moment not only to criticize the government’s unstable policies, but also to advocate for more decentralized control of fiat currencies.
Additionally, the resignation of Liz Truss as UK Prime Minister after just 45 days has also sparked further discussion. Namely, what impact could the resignation have on the mood of the crypto market and its regulations?
Impact of Liz Truss’ resignation on the pound
Martin Hiesboeck, head of blockchain and crypto research at digital asset platform Uphold, told Cityam: “Liz Truss’ resignation goes will not automatically improve the UK’s prospects. Now is a good time to diversify portfolios with other investments, like digital assets.
The pound would have only been sideways against the US dollar after the September mini-budget. In response, bitcoin trade jumped to £6 billion in the days that followed.. This was reported by local media, citing data from hedge fund Tyr Capital.
Ed Hindi, Chief Investment Officer at Tyr Capital, said in a Bitcoin Standard article: “These are really significant numbers, something we have never seen in developed countries. So far, such figures have only been seen in currencies of developing countries, such as the Turkish Lira. This shows how great the distrust of the new government’s financial policy is.”
The reaction of the markets was not long in coming. Although the change in the British Prime Minister from a regulatory point of view should not have a major impact on the pound.
Increased Interest in Bitcoin
Interestingly, the surge in interest in Bitcoin comes as the biggest cryptocurrency itself struggles to hold the crucial $20,000 mark.
Over the past 24 hours, the price of BTC has fluctuated between $18,971.75 and $19,324.57, according to CoinGecko. On the weekly and daily charts, the price has turned bearish. Meanwhile, the GBP/USD trading pair has traded between $1.0379 and $1.3830 over the past 52 weeks, according to Yahoo Finance.
When it comes to current market conditions and inflation rates, Digital Currency Group CEO Barry Silbert felt that Bitcoin is becoming the preferred safe-haven asset.
Moreover, Robert Kiyosaki, author of the book Rich Dad Poor Dad, recently predicted that the US dollar will also collapse by January 2023. will be. Kiyosaki believes investors are concerned about the instability of the pound and the euro.
Disclaimer
All information contained on our website has been researched to the best of our knowledge and belief. Journalistic contributions are for general information purposes only. Any action taken by the reader based on information found on our website is entirely at their own risk.