With the sell-off of the pound sterling, more and more investors are trying their luck in bitcoin. On Monday, when the British currency temporarily dropped more than 5 percent to a record low of $1.0382, purchases of the cyber-currency in pounds peaked at the equivalent of £943 million, industry agency Kaiko Research said. Until now, the daily average was 60 million euros.
“There is a direct correlation with the increase in the volume of bitcoin purchases and political and monetary instability,” said James Butterfill, principal analyst at crypto asset manager CoinShares.
Something similar could be observed, for example, with the Russian invasion of Ukraine, when Russian rubles and Ukrainian hryvnia were increasingly exchanged for Bitcoin and other cryptocurrencies.
Inflation could still rise
Last Friday, the new British government presented a package of tax cuts and consumer relief. Experts fear that these measures will further fuel high inflation.
They also expressed concern about the UK’s mounting debt. The pound then came under selling pressure that accelerated on Monday, triggering its biggest drop since the 2016 Brexit referendum. Bitcoin hit a two-week high against the British currency on Tuesday at £18,960.36.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
