Investors dump the pound and euro for bitcoin as the currency value drops. Charts reveal massive trading of fiat currencies for crypto by investors across several countries.
Investors Trade Fiat Currencies for Crypto.
The cryptocurrency market has witnessed large purchases at different times in the past. However, unlike market surges in which traders rush to capture volatility, the recent boom in crypto purchases is due to a different reason.
Cryptocurrency adoption and value have increased significantly over the years. As several fiat currencies collapse worldwide, the cryptocurrency market seems to be waxing stronger. Investors are now turning their sights on digital assets like Ethereum (ETH) and Bitcoin (BTC) as replacements for fiat currencies.
Investors Trade GBP and EUR for Bitcoin Massively.
According to a tweet by a popular crypto market Intelligence platform Messari on the 29th of September, investors are now favouring cryptocurrency over the pound and euro. In large numbers, investors in the European Union and the United Kingdom are trading their pounds (GBP) and euros (EUR) for Bitcoin.
The tweet explains:
“As these UK and EU individuals see the value of their currency collapsing, they are effectively selling the pound and euro for bitcoin. If this was just a trade to capture volatility, we would have seen similar spikes in May 2021 and certainly March 2020.”
Fiat Currencies Are Exchanged for Ethereum.
Concurrently, the crypto analysis also revealed that investors are trading their GBP and EUR currencies for Ethereum, however, to a lesser degree than crypto.
According to Messari’s tweet
“In Ethereum, individuals from the UK and EU have shifted their funds into ETH, but not to the same extent as Bitcoin. Ethereum volumes rose against the GBP, but these highs were similar to many on uneventful trading days in late 2020 and early 2021.”
While explaining the Ethereum situation, the platform also posted charts similar to those seen for Bitcoin vs. GBP/EUR, stating that “Ether sees no similar bid to BTC in recent currency debasements”:
The High Trading Volume of BTC and GBP
Reports have also shown that as of September 26, the trading volume of bitcoin and British pounds on the exchanges has hit a record high of over USD 880 million, far above the previous historical record of $70 million per day.
Data and Charts Show Large Purchases.
As of 27th September 2022, charts and data have shown the daily volume of Bitcoin bought in EUR reaching up to 50,000 between the 22nd and 27th of September. Interestingly, the same figure is recorded for Bitcoin purchases in pounds Sterling.
Price Analysis of BTC and ETH
Recent market analysis of Bitcoin and Ethereum revealed that ETH is currently priced at $1,346, up 1.74% on the day and 2.22% in contrast to the past week, despite a decrease in the number of new ETH addresses, suggesting a possible price correction in the future.
While Bitcoin is trading at $19,583, up 1.15% on the day and 1.69% on the previous week.
Source: https://crypto.news/eur-and-gbp-ditched-for-cryptocurrency-as-fiat-currencies-collapse/