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- According to data from CoinMarketCap, While writing this article, Bitcoin is trading at $19,314.
The Bitcoin-British pound(BTC/GBP) pair is registered for Trading on prominent cryptocurrency exchanges, including Bitfinex and Bitstamp are more active than ever.
Regardless, analysts are diverged on whether that stemmed from investors switching to the largest cryptocurrencies according to the market to safeguard against sterling slides or from traders looking to profit from volatility.
On Monday, 26th September, the trading price decreased and recorded the lowest price of $1.035; trading volume in pairs listed on those two exchanges climbed to $881 million.
Per the data shared by James Butterfil, head of research with CoinShares, This is 12 times the average daily volume of $70 million over the past two years.
The Pound’s weakness was fueled by uneasiness over the U.K.’s financial health from the new government tax deduction plans. In September 2022, the currency declined by 7% against the dollar; it is termed one of the sharpest declines since December.
An analyst of Bitfinex highlighted in an email that “An explosion in bitcoin trading against the pound underlines the potential of the biggest cryptocurrency to benefit from an apparent fragility in fiat currencies.”
On Wednesday, An analyst at crypto data provider Messari, Tom Dunleavy, stated an identical opinion in a research paper, having said that European investors are breaking into bitcoin in the wake of the rapid fall in the British Pound and euro.
Nonetheless, some observers say that trading volume is the total number of units or contracts exchanged between customers and vendors, which is an unreliable indicator of an investor’s position. Every customer has a vendor, so it is equally possible to argue that investors sold bitcoin when the Pound hit.
David Belle, founder of market news service and service and Trading community platform Macrodesiac.com and U.K. growth director at TradingView, said, “If you’re selling BTC for EUR or GBP, the volume will spike.” adding more, he said, “Same as if you’re buying it.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
