British investors are turning to Bitcoin as a result of the recent decline in the value of the pound sterling (GBP) relative to the dollar, which has been driven by worries that the country's financial crisis will worsen.
The noticeable increase in bitcoin trading volume against pound reflects many investors view that Bitcoin offers an easily accessible place to move funds when they feel risk of inflation is high. Which is why the week began with Bitcoin trading volume of people buying with the British Pound hit a record high of GBP 840 million (valued at $881 million USD)
The average daily trade volume of bitcoin in pounds is seen in the chart below at slightly over $72 million. Making this an increase of approximately 1,150%...
This is an amount too large to brush off as anything but a deliberate direct response."When a fiat currency is threatened, investors start to favor bitcoin." said James Butterfill, research director at coinshares.
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| GBP to BTC Volume via Coinshares |
Gabor Gurbacs, digital asset/crypto investment strategist at investment giant VanEck explains “Given that the UK is now outside of the EU bureaucratic apparatus, it will get another chance to become a Bitcoin hub. I think UK leaders will use this opportunity reasonably well.”
However, a number of analysts have noted that a strong US dollar is partly to blame for the recent declines in the value of the British pound and the euro, and it is extremely likely that this factor is also in the way of a crypto market recovery.
Or to put it another way, we might not notice a significant rise in bitcoin and cryptocurrency ownership until the US dollar starts to lose its position as the strongest currency in the world.
Still, this is one of multiple recent stories giving crypto investors a strong indication that it isn't a matter of 'if' the market will come back, but 'when'...
What does seem to now be proven is that investors globally are still interested in crypto, and willing to buy and trade it when they see an upside.-------
Author: Mark Pippen
London News Desk
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