the Bitcoin (BTC) caught the eye of UK investors amid falling pound sterling (GBP) against the dollar.
Data first presented by James Butterfill, director of research at Europe’s largest digital asset investment firm, CoinSharesindicate that bitcoin trading volumes have exploded against the British pound in recent days.
According to the data, BTC volumes against the British pound increased by more than 1,400% on September 27, from an average of $70 million to $881 million. In contrast, trading volumes against other currency pairs, such as the dollar, the dollar-pegged stablecoin USDT, and the euro, were more modest on the day.
According to Butterfill, the data indicates that investors tend to favor Bitcoin when a fiat currency is under threat.
His remark refers to sightings in the past where currency crashes have been watched by citizens of the country who seek stability in the crypto market and bitcoin. This trend has been seen in countries like Turkey, Venezuela, Argentina, and even Nigeria, where citizens have been noted as being “crypto-obsessed.”
The collapse of the British pound and the evolution of the price of Bitcoin
According to a CNBC report, the fall in the pound sterling was caused by the UK government’s announcement of a sweeping economic plan aimed at stimulating growth in the economy. Analysts said the plan, which includes tax cuts, “scared off” investors, causing the pound to fall around 3.5% against the dollar.
As Britain’s new Prime Minister Liz Truss prepares measures to curb the situation, the Bank of England (BoE) has warned that Britain’s economy is likely already in recession, according to the report.
For its part, Bloomberg notes that the fall not only had an impact on investors, but probably also damaged the reputation of the British government internationally. Bloomberg analysts say the “self-inflicted financial crisis” is now worrying international players about Britain’s ability to pay its debts. They add that homeowners and businesses are likely to pay the price for this mistrust.
Bitcoin (BTC) price reacted positively to the frenzy of UK investors. BTC is changing hands at around $19,400, up 2.19% in the past 24 hours and 1.5% over a week, after hitting a local weekly high of $20,346 according to CryptoRank data at the time of writing.
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