The recent volatility in the UK’s foreign exchange market caused by the September mini-Budget has led to a ten-fold increase in the volume of Bitcoin trades. This is according to cryptocurrency hedge fund, Tyr Capital, which placed the value of Bitcoin-pound trading at a staggering £6 billion in the days following the Budget. Investors retreated towards the relative stability of the digital coin for the first time, which was considered a ‘safe haven’ compared to Sterling. Sterling plummeted to its lowest point against the dollar since decimalisation in 1971 and later dropped by 10% when Chancellor Jeremy Hunt reversed several of his predecessor Liz Truss’ tax cut pledges. Meanwhile, Bitcoin’s volatility has remained under 5% over the same period. The development is indicative of severe distrust in the fiscal policies of the current government, according to Ed Hindi, Chief Investment Officer at Tyr Capital. In the last year until June 2022, the UK has become Europe’s largest crypto trading market and the sixth-biggest market globally, with $233 billion worth of cryptocurrency transacted. While most European economies witnessed a decline in crypto activity, Britain’s market was the only top-five western European country to grow over the same period.
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