Bitcoin and British Pound volumes hit all-time highs as UK currency hits all-time lows. – Democrat Blog

Bitcoin-sterling volumes hit record high as UK currency tumbles.

Trading volumes between the British pound and cryptocurrency bitcoin hit an all-time high after the pound fell on Monday, according to market data firm Kaiko Research, in what analysts see as a stampede by investors to the digital asset or an arbitration.

The pound fell to a record low against the dollar on Monday, after plunging the previous Friday following the UK government’s announcement of unfunded tax cuts.

The trading volume of the bitcoin-sterling pair on eight major exchanges around the world hit a record high of 846 million pounds ($920 million) on Monday, according to Kaiko Research, from an average of around 54.1 million. pounds a day so far in 2022.

The surge is likely due to traders trading sterling for bitcoin, said James Butterfill, head of research at cryptocurrency firm CoinShares.

“There is a strong correlation between bitcoin volume growth and political/monetary instability,” he said.

Butterfill said spikes have happened before in crypto trading volumes of other currencies, like the Russian ruble and Ukrainian hryvnia, but he’s never seen such moves in the volume of the bitcoin pair. -sterling.

Conor Ryder, research analyst at Kaiko, said the data suggests that cryptocurrency markets have reacted to volatility in fiat currencies. When the pound collapsed on September 26, “opportunistic investors flocked to cryptocurrency exchanges offering BTC-GBP to try to profit, via arbitrage, from any mispricing of bitcoin in major fiat currencies,” he said in emailed comments.

Cryptocurrency exchange Bitfinex said it saw a “significant spike” in trading volume and activity for the bitcoin-sterling pair on Monday, which Bitfinex analysts said “highlighted the potential for largest cryptocurrency to benefit from an apparent fragility of fiat currencies. »

Admittedly, cryptocurrencies are highly volatile, and the price of bitcoin has fallen sharply so far in 2022 as rising interest rates steer investors away from riskier assets.

Against the dollar, bitcoin has lost around 58% since the start of the year, while the pound has lost 20%.

Bitcoin was trading around $19,515 on Wednesday and at $17,940 against the British pound. The cryptocurrency hit a two-week high against the British pound on Tuesday.

($1 = 0.9195 pounds)

(With the exception of the title, this story has not been edited by staff and is published from a syndicated feed).

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Bitcoin and British Pound volumes hit all-time highs as UK currency hits all-time lows. – Democrat Blog

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