The Pound (GBP) has devalued sharply against the US dollar over the past month. This depreciation in the price of the fiat currency has boosted the volume of bitcoin (BTC), which on September 26, 2022, reached US$ 881 million in daily trading.
That same day, the Pound’s value fell in the market, and the currency approached parity with the dollar (USD). Meanwhile, the volume of bitcoin traded in the GBP/BTC pair rose by 316% in just one week.
Crypto assets such as bitcoin are becoming a refuge for investors in times of devaluation of fiat currencies such as the Pound.
This growth in the trading volume of digital assets has also been seen in Argentina, where the population has sought out stablecoins to escape the price instability of the Argentine peso.
The Pound has fallen on the market
The Pound’s price against the US dollar approached R$1.03 at the end of September 2022. The fiat currency depreciated sharply following an economic measures package presentation in the United Kingdom.
The government has proposed tax cuts to curb inflation, and the opposition has harshly criticized the proposal. The value reached by the Pound two weeks ago has not been seen in the market since 1985. The Pound price drop coincided with a substantial dollar rise, contributing to an approximation in value between the two currencies.
As the Pound approached R$1.03, the daily volume of bitcoin traded through the fiat currency reached US$881 million on the market, a new record. In seven days, trading increased by 316.17%.
Data on the movement of bitcoins through the GBP/BTC pair show that the volume grew by 878% between the end of August and September 26. Over the last twelve months, the growth was 1,431.76%.