As the cryptocurrency sector races to reclaim $1 trillion in market value, Bitcoin (BTC), its greatest asset, has topped $20,000, in addition to rising against fiat currencies, including the world’s oldest currency, the British pound.
According to statistics provided on October 24 by blockchain analytics platform Kaiko, compared to Bitcoin’s relatively steady price, the British pound sterling (GBP) showed the biggest volatility increases in September, resulting in a substantial surge in BTC-GBP trading volumes.
The weakening of the pound is attributable to the UK government’s fiscal stimulus plans announced by the country’s shortest-serving Prime Minister, Liz Truss, which caused a sell-off in British assets and raised Bitcoin’s attractiveness as a hedging alternative among investors.
As a consequence, Bitcoin volumes skyrocketed in UK exchanges, with trading volumes between BTC and GBP increasing by 233% in September compared to the previous month, according to statistics from crypto research company CryptoCompare.
Specifically, trade volumes between GBP and Bitcoin reached a daily record high of £846.89 million on September 26, up 1,379.8% over the previous day’s total of £57.23 million.
Nonetheless, trade volumes between Bitcoin and GBP have returned to pre-September levels, reaching £21.53 million on October 26, with the pound recovering to a six-week high after the UK government’s decision to delay the fiscal event statement until November 17.
Finbold had previously claimed that Bitcoin’s volatility over 20 days has dropped below those of U.S. stocks, particularly the S&P 500 and the Nasdaq indexes, for the first time since 2018 when FX volatility reached post-pandemic highs.
Bitcoin is presently exchanging hands at a price of $20,551, which reflects a rise of 6.32 percent over the last 24 hours and 7.19 percent over the previous seven days.
According to statistics gathered by Finbold on October 26, these gains are contributing to the success of the new currency on the monthly chart, which shows a 7.70% growth over the previous 30 days.
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