BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
FOLLOW
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result

Crypto Traders Are Lining Up To Trade against the British Pound as U.K. Financial Woes Continue

BlockNews Team by BlockNews Team
October 13, 2022
in Crypto, Media, Politics
Crypto-EU
Share on TwitterShare on Reddit

Traders in the crypto market are flocking to trade against the British Pound (GBP) as financial turbulence continues in the U.K. This comes after a September announcement of unfunded tax cuts, causing more people to trade cryptocurrencies against the GBP.

It all started after the September 23 ‘mini budget’ by Chancellor of the Exchequer Kwasi Kwarteng, a release that has since sent the U.K. government bonds and the GBP tumbling. This caused a crisis for pension funds in light of surging yields on longer-term government debt prompting rapid adjustment of investor portfolios. To manage the spilling over of results, the Bank of England (BOE) introduced a package of bonds that eased the pressure.

According to a report by Reuters, British stocks fell again on Wednesday, October 12, following a move by BOE Governor Andrew Bailey to caution pension funds of the looming termination of support by October 15.

Later on, however, Financial Times released a contradicting report noting that the Bank of England briefed bankers that the emergency bond-buying program could go beyond the October 15 deadline.

British Pound Lags Amid Surging Crypto Volumes

The distress in the U.K is happening simultaneously when Bitcoin trading volumes are increasing against the GBP. According to data from crypto exchange Bitfinex, BTC/GBP volumes have been spiking since late September.

With both Bitcoin (BTC) and Ether (ETH) trading overpowering the volume of trades in GBP, this is evidence of traders’ reduced confidence in the government. The importance of BTC/GBP has spiked alongside financial concerns in the U.K. Moreover, Bitfinex has also noted that ETH volumes have increased against the British Pound.

Other than that, the GBP distress may also be attributed to arbitrage, the simultaneous buying, and selling of cryptocurrency across different markets in the U.K. Similarly, there has also been a significant increase in ETH/GBP volume.

Based on the above data, some investors in the U.K. speculate that the Pound is losing ground to crypto. A Twitter user going by the name @CL207 posted on October 12 saying,

“…hmm interesting, most evident on bitstamp / bitfinex; it’s not a crazy amount, but not bad.”

Although the above data may indicate that investors in the United Kingdom are abandoning the Pound in favor of crypto, it may not necessarily be the case. According to The Block’s Vice president of Research Larry Cermak, a time may come when the British Pound is volatile. When this happens, Cermak opines that some traders, if not all, could rake in more gains arbitraging against BTC/USD pairs.

According to Cermak, it is faulty to conclude that investors and traders are dumping GBP and buying Bitcoin or Ether. In his opinion, the data could also be due to the actions of market makers and traders attempting to arbitrage the difference.

Tags: cryptoEUPolitics
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

Members of Pop Social
Media

Pop Social Raises $4M in Strategic Seed Round

September 27, 2023
Riot Bitcoin Farming Facility
Featured

Texas now leads U.S. Bitcoin mining, outpacing former leaders Georgia and New York

September 27, 2023
binance bitcoin - Eth
Business

Binance Makes a Comeback in Belgium, Three Months After Order to Stop

September 27, 2023
Coinbase Logo over dotted map of Europe
Business

Coinbase Strengthens European Footprint with Bank of Spain Registration

September 27, 2023
Crypto Coins on European Flag
Crypto

European Investors’ Rising Confidence in Cryptocurrency Divergent From US Sentiments

September 27, 2023
Terra Luna Logo
Crypto

Terra Classic Community Votes to Stop Minting and Reminting USTC Tokens

September 27, 2023
Load More
Next Post
Core Scientific

Crypto Miner Core Scientific Will Pursue What Celsius Mining Owes

Ripple

Ripple CEO Anticipates Answer in SEC Lawsuit Over XRP in the First Half of 2023

Blockwater-Logo

Another Crypto Company Blockwater Has Landed In Hot Waters, Leaves More Room For Questions On The Blockchain Industry

Related News

Greyscale

Grayscale Accuses SEC Of Being Too Harsh On Spot Bitcoin Funds

October 14, 2022
bitcoin

Bitcoin Price Prediction For 2023: Looking At BTC 2014-2022 Performance

January 11, 2023
Google Logo

Google Joins the Ethereum Merge Excitement With A Countdown Timer

September 14, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
Discord Twitter Instagram TikTok
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Pop Social Raises $4M in Strategic Seed Round September 27, 2023
  • Texas now leads U.S. Bitcoin mining, outpacing former leaders Georgia and New York September 27, 2023
  • Binance Makes a Comeback in Belgium, Three Months After Order to Stop September 27, 2023

© 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?