Bitcoin is a convenient method of payment and a reliable store of money for many fans. It is becoming more and more popular, particularly in developing nations where the people frequently lacks access to the financial system or when raging inflation erodes trust in national fiat currencies.
But it’s interesting that Bitcoin also serves as a suitable target for exodus of capital from a sophisticated economy. The Bank of England’s initial strategy was increasing interest rates and reducing its balance sheet to combat growing inflation. However, because of the pressure that increasing gilt rates are putting on the British financial system, the BoE has been compelled to actively purchase government bonds in addition to slowing or stopping the balance sheet reduction process. a state that makes the balance sheet larger.
This change in monetary policy caused BTC/GBP to reach an all-time high. set a new record high, demonstrating unequivocally that the British are abandoning the pound in favor of bitcoin.
Bitfinex and Bitstamp data show that the volume of BTC/GBP trade on Monday was already more than 1100 percent greater than typical.
There is now less trust in central banks and the currencies they produce as a result of the recent global crises. a globally recognized issue that is now rapidly affecting developed nations.
While there has been minimal movement in the last week, with a gain of 0.17%, Bitcoin is growing today, with a BTC/USD price of $19,189, an increase of 0.62%.
After falling to a low of $18,505 yesterday, prices have recovered quickly, favoring a daily close above the $19,251 level of the 78.6% Fibo retracement.
The support is currently being challenged once more, so it doesn’t appear like a rally towards the psychological $20,000 level is close at hand. One may see a continuation of the rebound in the direction of the 61.8% Fibo retracement at $20,523, but only if the bulls are able to pass it successfully.
If the daily close falls beneath the 78.6% Fibo retracement, attention will turn to yesterday’s bottom. If we fall below this level, we might see more losses all the way down to the cycle low of $17,630.