As the British pound continues to decline against the surging U.S. dollar, investors seem to be turning to Bitcoin (BTC) as a means of maintaining stability.
The rising trading volume of Bitcoin and the British pound demonstrates the investors’ preference for flagship cryptocurrencies. For instance, statistics supplied by James Butterfill, director of research at CoinShares, suggested that the GBP/BTC trading volume on exchanges reached an all-time high of $881 million on September 26. The average daily amount is approximately $70 million.
Over the last 30 days, the volume of the GBP/BTC pair has increased by 878.11 percent, while over the past year, it has increased by 1,431.76 percent.
In addition to the pound, data indicates that the trading volume of major fiat currencies has increased with Bitcoin. In the previous 30 days, the volume versus the Euro has likewise increased by 84.84%. In the same time period, volume for the USD/BTC pair increased by 66.52 percent.
Based on the performance, Butterfill remarked, “when a FIAT currency is endangered, investors tend to support Bitcoin.”
The move to Bitcoin comes amid worries that British Prime Minister Liz Truss’s plan to boost government borrowing to pay for tax cuts would raise inflation. The situation pushed the pound to all-time lows, forcing the Bank of England to issue a reassuring statement.
The fact that British residents are focusing on Bitcoin somewhat justifies the argument that the cryptocurrency might serve as a hedge against inflation.
Consequences of the rising GBP/BTC volume
At the same time, the collapse of the British pound may be seen as a good indicator for Bitcoin, as it provides possibilities for people to switch to cryptocurrencies out of concern for the devaluation of their money.
In this regard, a recent Finbold analysis showed that the majority of Britons are progressively adopting digital currencies, having invested over $34.7 billion in the industry. According to the survey, 34% of the British population owns various types of cryptocurrency, with Bitcoin accounting for the most significant proportion.
Bitcoin continues to consolidate under the $20,000 threshold. At the time of publication, the asset was trading at $19,800, a correction of nearly 6% in the previous twenty-four hours.
Also Read: The Digital Euro Should Be Borderless And Governed, According To The ECB President
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