Friday , November 8 2024
Home / Bitcoin (BTC) / Bitcoin Unstable? Check Out the British Pound

Bitcoin Unstable? Check Out the British Pound

Summary:
In what appears to be a stark role reversal, Bitcoin is now becoming less volatile money than Britain’s national currency.   According to data provided by Bloomberg, the 30-day volatility of the British pound against the U.S. dollar has soared over the past month.  Meanwhile, Bitcoin’s volatility has declined substantially since June, and again since the start of October. This has brought each currency’s volatility to a roughly equal point. BTC Volatility vs. GBP Volatility. Source: Bloomberg Bitcoin went down as one of the best-performing assets in the previous quarter – simply by staying relatively flat while stocks and commodities continued to fall.  The pound experienced turbulent volatility at the end of September, almost declining to parity with the U.S. dollar. At

Topics:
Andrew Throuvalas considers the following as important:

This could be interesting, too:

Chayanika Deka writes Wintermute Pushes for Ethena Fee Switch to Benefit sENA Token Holders

Wayne Jones writes FTX Co-Founder Gary Wang Appeals for Leniency Ahead of Sentencing: Report

Wayne Jones writes Cynthia Lummis Reaffirms Vision for a Strategic Bitcoin Reserve in America

Wayne Jones writes Justin Sun Proposes Job Opportunity to SEC Chair Gary Gensler

In what appears to be a stark role reversal, Bitcoin is now becoming less volatile money than Britain’s national currency.  

  • According to data provided by Bloomberg, the 30-day volatility of the British pound against the U.S. dollar has soared over the past month. 
  • Meanwhile, Bitcoin’s volatility has declined substantially since June, and again since the start of October. This has brought each currency’s volatility to a roughly equal point.

    A cash tray holding British pound banknotes and coins in a shop in Barking, UK, on Tuesday, Sept. 13, 2022. As the UK enters a period of public mourning after the death of Queen Elizabeth II, data releases are likely to show a temporary reprieve in inflation and a jump in wage growth.
    BTC Volatility vs. GBP Volatility. Source: Bloomberg

  • Bitcoin went down as one of the best-performing assets in the previous quarter – simply by staying relatively flat while stocks and commodities continued to fall. 
  • The pound experienced turbulent volatility at the end of September, almost declining to parity with the U.S. dollar. At the same time, trading volume for the BTC / GBP trading pair soared – an emerging trend among collapsing currencies
  • Global bond markets are also showing heightened volatility against Bitcoin, despite the former’s reputation for safety and dependability, and the latter’s reputation as a risk asset. 
  • In Britain’s case, the Bank of England has now returned to temporary quantitative easing to curb instability in its bond market, which nearly caused a “Lehman moment” in September. 
  • Many central banks – including former Fed chair Ben Bernanke – have previously denied that Bitcoin could constitute a form of money, largely due to being too volatile. 
  • Sweden’s central bank presented a similar argument in May: “The price of Bitcoin has had a high degree of volatility and is thus a relatively poor preserver,” it explained over Twitter. 

You Might Also Like:

Leave a Reply

Your email address will not be published. Required fields are marked *