As the cryptocurrency market rushes toward reconquering the $1 trillion capitalization mark, its largest asset – Bitcoin (BTC) – has surpassed $20,000, on top of its strengthening against fiat currencies, including the world’s oldest currency, the British pound.
Indeed, compared to Bitcoin keeping a relatively stable price, the British pound sterling (GBP) recorded the highest volatility growth in September, leading to a dramatic increase in BTC-GBP trading volumes, according to data published by blockchain analytics platform Kaiko on October 24.
The weakening of the pound can be attributed to the UK government’s fiscal stimulus initiatives unveiled by the country’s shortest-serving Prime Minister Liz Truss, which triggered a sell-off in British assets and increased Bitcoin’s appeal as a hedge option among investors.
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How much did the trading volume increase?
As a result, Bitcoin volumes surged on UK markets, with trading volumes between BTC and GBP skyrocketing 233% in September compared to the month before as investors began to flock toward the flagship digital asset, according to data from crypto research firm CryptoCompare.
Specifically, trading volumes between GBP and Bitcoin spiked to a daily record high of £846.89 million on September 26, whereas on the day before, they stood at only £57.23 million – an increase of 1,379.8%.
That said, trading volumes between Bitcoin and GBP are now back to their pre-September levels, standing at £21.53 million on October 26, with the sterling rallying to a fresh six-week high after the UK government’s decision to postpone the fiscal event statement to November 17.
Meanwhile, Bitcoin’s volatility over 20 days had fallen below that of U.S. equities, primarily the S&P 500 and the Nasdaq indices, for the first time since 2018 as FX volatility rose to post-pandemic highs, Finbold reported earlier.
Bitcoin price analysis
As things stand, Bitcoin is currently changing hands at the price of $20,551, which represents an increase of 6.32% over the previous 24 hours, as well as 7.19% compared to seven days before.
These increases are adding up to the maiden currency’s success on the monthly chart, which presently shows an increase of 7.70% over the previous 30 days, as per data retrieved by Finbold on October 26.
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