Cryptocurrency

UK flocks to Bitcoin in September due GBP decline

Zegex

Bitcoin (BTC) and British pound trading volumes surged 233% in September, according to data from CryptoCompare.

In September, the British pound hit an all-time low against the US dollar. Reuters reported that sterling and bitcoin trading volumes peaked at 拢846 million ($955 million) on Sept. 26.

Former British Prime Minister Liz Truss announced a mini-budget on Sept. 23, prompting many investors to vie for Bitcoin as an inflation hedge.

While the budget withdrawal and Truss’ resignation temporarily stabilized the pound, more investors are starting to see bitcoin as a go-to asset against fiat currencies under pressure.

The troubled economy turns to Bitcoin.

The CryptoCompare report continues with BTC gaining against other weak currencies. According to reports, Bitcoin’s trading volume has surged against the Australian dollar (AUD), Japanese yen (JPY), Turkish lira (TRY), and euro (EUR) within the past three months.

Bitcoin trading volume against weakened currencies
Source: CryptoCompare

Citizens adopted BTC en masse in the early days of the Russian and Ukrainian crises, as the currencies of both countries fell significantly.

Recent chainalysis report We also identified that Latin Americans are increasingly using cryptocurrencies to combat high inflation in the region. However, according to the report, people in the region preferred stablecoins to Bitcoin due to their relative stability.

the expert is claimed Easy access to bitcoin and the broader crypto market, as opposed to other possible inflation hedges like gold, make digital assets attractive for economies in crisis.

However, this does not mean that Bitcoin was without blemish.Its volatility is now very lowits price performance is not encouraging as it has been trading range-bound for the past three months.

crypto slate A study reveals that Bitcoin has fallen more than 50% in the last year. By comparison, no major fiat currency or traditional financial instrument has lost more than 20% of its value in the indicators year-to-date.

Coinbase lags behind its competitors

Spot trading volume on US-based exchange Coinbase has fallen to its lowest level since January 2021, according to a report by CryptoCompare. The exchange’s trading volume fell 17.6% to $48.1 billion, according to the report.

In comparison, rivals such as Binance, OKX and FTX all saw volume increases of 23.5%, 8.26% and 5.49% to $541 billion, $58.1 billion and $51.8 billion respectively.

The report also noted that bitcoin spot trading increased on these exchanges despite the broader market decline experienced in September.

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