British Pound Has Been Almost as Volatile as Bitcoin in the Past Month
The development also comes on the back of increasing investment in Bitcoin, following the British Pound volatility. BeInCrypto reported last month that over a third of Brits own some form of crypto. This market trend emerged as inflation hits living costs, gas prices soar, and the pound weakens in the international market.
This has been a notable event considering that BTC, which was born in 2009, seems to be no more volatile than one of the world’s oldest currencies, the British Pound. Therefore, Bitcoin maximalists are having a field day criticizing the government’s unstable policies. They are advating for less centralized control over currencies.
Meanwhile, Liz Truss resignation as the Prime Minister of the United Kingdom, just after 45-days, has also triggered a discussion. What will be the crypto impact based on sentiments and regulations?
Impact of Liz Truss Resignation on the British Pound
Martin Hiesboeck, head of blockchain and crypto research at digital asset platform Uphold, told a media outlet, “Nevertheless, Liz Truss’s resignation won’t automatically change the negative outlook for the U.K., so it’s a good time for other investment vehicles to diversify their portfolios with digital assets.”
Reports also recently noted that the pound moved sideways with respect to the U.S. dollar after the September mini-Budget. Which also sparked £6 billion worth of Bitcoin-pound trading in the following days. Local media reported citing data by hedge fund Tyr Capital.
Ed Hindi, Chief Investment Officer at Tyr Capital, told the Standard: “These numbers are significant, and they are something we haven’t seen in developed countries in the past.
“We have only seen it in developing countries’ currencies like with the Turkish Lira. It gives you an idea of how much distrust there has been in the fiscal policies of the new government.”
Market sentiments were quick to respond. Still, as far as the regulatory front is concerned, the change of UK PM may not have a major impact on the British Pound.
Bitcoin Shows Increased Interest
Interestingly, the increased interest in Bitcoin comes at a time when the top coin by market cap is also struggling to surpass the crucial level of $20,000.
At the time of writing, BTC is trading in the 24-hour range of $18,971.75 and $19,324.57 on CoinGecko. The king coin has lost value both on the weekly and daily charts. At the same time, the GBP/USD trading pair has a 52-week range of 1.0379 – 1.3830 on Yahoo Finance.
But, the current market conditions and inflation levels have made Digital Currency Group CEO Barry Silbert say that Bitcoin will become the preferred safe-haven asset.
That said, Robert Kiyosaki, author of Rich Dad Poor Dad, recently forecasted the U. dollar would also collapse by Jan. 2023. Kiyosaki believes that investors are becoming alarmed by the British Pound and the Euro instability.
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