The recent dramatic events in the UK’s parliament have caused sterling to take a tumble, and as Cointelegraph reports, Bitcoin looks stable by comparison.
The United Kingdom’s liberal-leaning daily newspaper The Independent reported on 3rd September that Bitcoin has, amid the country’s parliamentary drama and the pound’s tribulations, by contrast, seen a solid and protracted period of growth.
Currently the top cryptocurrency is trading above $10,500 — up 8.36% on the week. Meanwhile the British pound, was at one point yesterday trading below $1.20 — a level not seen since 1985.
The political chaos over Brexit is not the only event affecting the currency markets. Trade tensions between the US and China have also affected the dollar, and in Argentina there is a deepening currency crisis. The protests in Hong Kong are another major scenario that has taken its toll.
The Independent newspaper quoted Marcus Swanepoel, CEO of cryptocurrency firm Luno, who said: “After lackluster trading over the weekend, Bitcoin went against the market trend yesterday, quickly breaking through the $10,000 level and reaching $10,500. Today the focus will be on Europe and the Brexit developments in the UK, as well as the deepening crisis in Argentina.”
Nicholas Gregory, CEO of blockchain firm CommerceBlock, who has recently reflected on the stark impact of political upheavals on traditional markets and fiat currencies also commented: “Not only will a no-deal departure from the EU create turmoil and volatility across two major fiat currencies, it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies is laid bare.”
Gregory has argued that the case for cryptocurrencies is reinforced when central banks increase the money supply stating, “It’s another nail in the coffin of fiat.”
Neil Wilson, chief market analyst at Markets.com, has further observed that the outlook for the pound will not only suffer from a no-deal, but also from the uncertainty triggered by a snap general election in Britain.