twitter user @tier10k posted a Bloomberg chart showing the pound’s volatility is approaching that of Bitcoin.
The pound has been more volatile against the dollar in recent weeks, fueled by political instability largely driven by the weakness of the UK economy. Especially the consequences from the disastrous “mini-budget”.
Newly appointed Prime Minister Jeremy Hunt scrapped the plan shortly after taking office on October 14.
In contrast, Bitcoin’s volatility against the dollar has fallen to nearly converge on the pound.
Bitcoin volatility drop
Since mid-September, Bitcoin price action has been moving in a narrow range between $18,100 and $20,500.
While critics see this as evidence of low demand during times of economic uncertainty, another view is that BTC has seen lower volatility.
The latter view is more appropriate given that the Dow Jones has fallen 6.4% from 32,676 in mid-September to 30,581 today.
The dominant narrative when comparing digital and legacy assets is that the former is highly volatile.
It will be interesting to revisit such comparisons in the future as interest rates and inflation rise.
Prime Minister Truss resigns amid mounting pressure
After taking office on September 6, former British Prime Minister Liz Truss resigned after just 45 days in office. Truss holds the enviable title of Prime Minister for his shortest tenure.
The announcement was made outside Downing Street next A disastrous spell in which her political authority vanished as her own party members opposed her.
Truss inherited a host of problems, including rising energy costs, rising inflation and a looming recession that left him out of work.nevertheless her critics criticized her political naivetyespecially for “mini-budget” treatment.
The ‘mini-budget’ set tax cuts and more borrowing, causing the market to rebound, leading to a weaker pound and the brink of bond market collapse.
Undoubtedly, it was a point of no return for her, despite being nervous about the aftermath of “Mini Budget.”
The pound rose to 1.132 against the dollar on news of Truss’ resignation.
