Bitcoin: Brits take refuge in BTC – central banks experience loss of confidence


© Reuters.

Investing.com – For many enthusiasts, the is a suitable means of payment and store of value. It enjoys growing popularity, especially in emerging countries, where the population often does not have access to the banking system or where runaway inflation weakens confidence in local fiat currencies.

But the fact that bitcoin also serves as an appropriate target for capital flight from a developed economy is novel. Originally, the objective of the was to counter the rise of the by raising interest rates and reducing its balance sheet. But Britain’s financial system has come under such pressure from rising gilt yields that the BoE has been forced not only to slow or halt balance sheet reduction, but even to actively buy government bonds. State, which increases the balance sheet again.

In the context of this reversal of monetary policy, the has reached an all-time high. reached a new all-time high, which clearly shows that the British are turning away from the pound in favor of BTC.

According to data from crypto exchanges Bitstamp and Bitfinex, BTC/GBP trading volume was already more than 1100 percent higher than usual on Monday.

The crises that have shaken the world in recent years have caused a drop in confidence in central banks and the currencies they issue. A phenomenon well known in other parts of the world, but which now increasingly affects industrialized countries.

Bitcoin price technical benchmarks

Bitcoin rises today to 19,189 dollars, an increase of 0.62%, while on a weekly basis, there is little change with an increase of 0.17%.

Following yesterday’s drop to the low of $18,505, a quick recovery has occurred, favoring a daily close above the 78.6% Fibo retracement of $19,251.Bitcoin (BTC/USD)

Today the support is being tested again so it doesn’t look like a rally towards the psychological $20,000 mark is imminent. Only if the bulls manage to cross it sustainably, one could imagine an extension of the recovery in the direction of the 61.8% Fibo retracement at $20,523.

In the event of a daily close below the 78.6% Fibo retracement, the focus would shift to yesterday’s low. Below this, the door would then open for further losses towards the cycle low of $17,630.

By Marco Oehrl



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