The trading volume of Bitcoin against the number of global currencies has increased recently, according to a report by the digital asset data provider CryptoCompare. A prime example is a BTC-GBP pair, which gained 233% in September after hitting an all-time low of £1.03 against the dollar in August.
As the global economy struggles to cope with rising inflation and the oil crisis, several currencies have lost value and buying power against the US dollar. It is possible that dealers and investors are using bitcoin and stablecoins to hedge their weak currencies due to the unusual increase in trading volume.
What Changed?
Bitcoin’s market share and volatility remain the lowest among the major cryptocurrencies. In September, Bitcoin beat both the S&P 500 and Nasdaq, which declined by 9.34% and 10.5%, respectively.
In the wake of the much-anticipated Merge, Ethereum performed the worst. After the Merge, Ethereum traded at $1,300, below its 50-day moving average, while volatility also increased.
👋 A new block was found on the #Bitcoin network. We're at block height 757567, current #bitcoin price is $19446.34 and there are 182767497690011 #sats left to mine.
— satsleft.info (@satsleft) October 7, 2022
An unpredictable macroeconomic environment and rising interest rates contributed to an increase in volatility in the cryptocurrency markets in September, according to CryptoCompare.
In terms of volatility, Ethereum and Solana ranked highest, with 80.0% and 82.6%, respectively, for the past 30 days. A downward trend in Bitcoin’s volatility from June to September was reversed by an increase of 19.2% in September.
Bitcoin set for record losing streak as 'stablecoin' collapse crushes crypto price . Cryptocurrencies nursed large losses on Friday, with bitcoin trading near $30000 and set for a record losing streak as the collapse of TerraUSD,,,,
— debbie (@xiaomai76409159) October 8, 2022
BTC volumes increased by 15.4% in USDT and 15.1% in USD in September despite most volumes declining. Moreover, previous volatility in fiat currencies, such as the British pound and Japanese yen, may be motivating market participants to move currency into Bitcoin.
Due to the switch from proof of stake to proof of stake, ETH’s USDT volumes decreased by 49.4%. However, SOL’s USDT volumes increased by 10.5%, while Cardano and Solana’s USD volumes decreased.
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