Bitcoin Volume Spikes As UK Experiences Market Uncertainty• October 1, 2022 6:21 pm • Comments
Very recently, the Bitcoin trading volume within the UK spiked to an extraordinary level and was recorded to be the highest for the past few years.
This coincided with the free fall of the British pound which indicated fiat currency issues that the country was dealing with.
Based on the revealed data from CoinShares, the volume had reached around $900 million which was the highest level in more than two years.
The reason for the explosion of volume is unknown but speculators believe that Bitcoin may have been a popular alternative asset that increasing serves as a hedge against rapid currency debasement.
Should more events happen to other currencies as it happened to the British pound, Bitcoin may once again experience surging levels of volume.
🇬🇧UK investors are looking into @Bitcoin exchange now.
— Wisnig – Blockchain Studio (@Wisnig_) September 28, 2022
We can’t say for sure, but if the volumes were driven by those seeking safety in bitcoin, it would represent a very interesting turning point for the nascent digital monetary good and how it is being viewed by the broader market.
One has to imagine that there are foreign exchange traders surveying the landscape of rapidly debasing fiat currencies across the world who are beginning to panic, especially when currencies like the pound and the yen are faltering in the way they have been over the last couple of weeks.
Even though the dollar is ripping, it is the most polished piece of shit on the pile.
Its relative strength doesn’t seem so strong when you consider the problems that exist throughout the U.S. economy: inflation is high, energy policy is suicidal and rising rates are beginning to put a massive beat down on U.S. consumers — particularly home owners and those with significant amounts of credit.
So far, it is not surprising that more and more investors are starting to see BTC and other digital assets as more attractive investment options as potential hedges.
The concerns regarding inflation are widespread among multiple fiat currencies these days and BTC is also a nice way to diversify risk compared to the decline of bonds and stocks.
Increasing exchange volume may signal this new trend shift as the asset class continues to become more popular and more institutions recognize its value proposition.
This is especially true given the current traditional market environment where the market cap of the US equities market has severely declined in the past year.
Bitcoin Volume Spikes In United Kingdomhttps://t.co/vSeiQTuB2t
— PABS Crypto News (@PABS_News) October 1, 2022
“Like gold, Bitcoin could be a hedge against their own policies. Which is worth a small % allocation and support,” he continued.
“Some are starting to understand this.”
Beyond the pound, data shows that the major fiat currencies are suffering more at the hands of a surging greenback than those of emerging markets (EMs).
“The tables have turned,” Robin Brooks, chief economist at the Institute of International Finance, declared this week.
“Emerging markets like Brazil and Mexico are year-to-date outperforming G10 currencies against the Dollar. This is a big pivot in global markets that’s unprecedented. EM monetary policy is these days more orthodox than in advanced economies. Well done EM…”
An accompanying chart from Bloomberg showed the Brazilian real and Mexican peso gaining even on the dollar in 2022.
The pound brought up the rear along with the yen, while the Russian ruble was notably absent, having hit its highest in dollars since 2015.
Bitcoin must be looking mighty attractive to the UK right now. https://t.co/Npu4WjjlkT
— Cointelegraph (@Cointelegraph) September 27, 2022
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