Bitcoin (BTC) is attracting the interest of British investors despite a decline in the value of the British sterling (GBP) as compared to dollars (USD).
The data was first reported through James Butterfill, head of research at Europe’s biggest investment company in digital assets, CoinShares is a sign that Bitcoin trading volume has witnessed an increase in comparison to GBP within the last few days.
As per the information, Bitcoin volumes against GBP have increased by over 1,400% since September 27, rising up from an average value of $70million up to $881 million. However, the trading volumes against other currency pairs like USD, a stablecoin pegged to dollar USDT along with the euro, were moderate on the day.
According to Butterfill this data points toward the trend of investors choosing Bitcoin when fiat currencies are threatened.
His comment refers to the past when the effects of currency crashes were closely watched by the people of the country who seek stability in Bitcoin and another market for crypto. This trend has been observed in nations like Turkey, Venezuela, Argentina, and even Nigeria in which are adopting crypto increasing.
The British dollar slump as well as Bitcoin’s performance in the price
According to a CNBC story, the sterling plunge was caused due to the U.K. government’s announcement of radical economic plans in an effort to increase the growth rate of the economy. According to experts the plan that includes tax reductions, “spooked” investors causing GBP to plummet to approximately 3.5 percent in comparison to the US dollar.
The decline is the closest GBP has been to parity with the dollar since 1985. As Britain’s new premier Liz Truss prepares measures to deal with the issue as well, she is also preparing measures to address the issue. Bank of England (BoE) has declared about there is a risk that the British economy is currently in recession, as per the report.
In the meantime, Bloomberg notes that the downturn has not only affected investors but has also tarnished the U.K. government’s credibility internationally. In the opinion of Bloomberg analysts that this “self-inflicted economic crisis” is now causing international players to be concerned about the ability of Britain to repay its debts. The analysts add that businesses and homeowners will be the primary victims of the skepticism.
The value of Bitcoin (BTC) has responded positively to exuberant British investors. BTC trades at about $19,400. This is an increase of 2.19 percent in the past 24 hours, and 1.5 percent for the week following an all-time high of $20,346 according to the data provided by CryptoRank.