On 26 September, the daily volume of GBP-denominated Bitcoin trading reached an all-time high of 47,000 BTC amid the sharp depreciation of the British pound. Arcane Research analysts noted as much.
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Similar trends were observed in the ETHGBP pair.
Experts noted that a similar pattern had appeared in the spring for the Russian ruble and Ukrainian hryvnia.
The rally to record BTCGBP was sparked by proposal by finance minister Kwasi Kwarteng to cut taxes to support the economy amid high inflation.
Doubts about the sustainability of the country’s budget pushed 30-year gilt yields to a 2002-era high of 5%, and the pound slid to an all-time low of 1.0356 per USD. The situation stabilised after the Bank of England launched a temporary asset-purchase round.
Weakening confidence in the pound and a rising share of those who have warmed to digital assets may have contributed to higher trading volumes, say specialists.
Trading volumes were also boosted by arbitrage opportunities. Market participants faced a substantial BTCGBP discount to BTCUSD amid the pound’s sharp depreciation against the dollar and subsequent price deviations from parity.
Kaiko analysts noted a rise in the gold–Bitcoin correlation.
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