Brits are increasingly turning to bitcoin now that the British pound is weak. The British pound remains weak against the US dollar. It corresponds to the trend in which the volumes of the Euro and the British Pound are rising. The rise in the volume of the Bitcoin pound is shown by figures from Coinshares, which are based on stock data from Bitfinex and Bitstamp.
James Butterville, Head of Research at Coinshares, shares this on Twitter. On September 26, the volume reached a record high of $881 million. Usually that’s $70 million a day.
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Researchers at Coinshares, an investment fund, have calculated that the trading volume of the GBP/BTC pair has increased by as much as 878 percent. The volume of fiat currency pairs other than the dollar is also on the rise. So, Butterfly concludes: “Once the fiat money is threatened, it seems that investors prefer Bitcoin.”
The fact that British investors are looking for alternatives also has to do with the plans of the new British Prime Minister Liz Truss. It plans to increase government borrowing to pay for tax cuts that experts say are fueling inflation. These plans pushed the pound lower against the dollar and prompted the Bank of England to intervene.
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As of Wednesday (yesterday), the central bank started buying long-term government bonds, with the aim of calming financial markets, it was announced in an official press release. The weakness of the pound is putting more pressure on the UK economy, a trend that has started since Brexit. Government bond purchases will continue at least until October 14. There is also a plan to raise interest rates to bring inflation back to 2%.
With the pound weakening and inflation rising, citizens are looking for alternatives to their savings. One option is crypto, with bitcoin being the most popular as the flagship. An earlier report showed that Britons have collectively invested £31.7 billion in cryptocurrencies.
