As The Euro and Pound Weaken, Investors Are Turning to Bitcoin

The cryptocurrency industry seems to be thriving. This occurs while many fiat currencies throughout the world are losing value. Ethereum (ETH) and Bitcoin (BTC) are two examples of digital assets attracting investors’ attention.

Bitcoin Has Attracted a Large Number of Investors

The cryptocurrency market intelligence platform Messari released some new statistics on September 29. According to the report, UK and EU investors are unloading their GBP and EUR holdings (EUR). There seems to be a massive outpouring of buyers into the Bitcoin market.

According to the site, as people in the UK and EU perceive the value of their currency plummeting, several of them are beginning trading in their pound/euro for bitcoin. May 2021 and March 2020 would have witnessed the same jumps if this was merely a trade to catch the volatility.

A daily volume of Euros used to purchase Bitcoin reached 50,000. The forecast runs until September 27; thus, the graphic indicates this. There was a corresponding amount of Pound Sterling used to buy Bitcoin.

Coincidentally, the crypto analytics website reported that investors were exchanging some of their Euro and Pound Sterling holdings for Ethereum. 

On September 30, Messari tweeted a statement claiming that, unlike Bitcoin, Ethereum had seen a slight but noticeable influx of capital from the United Kingdom and the European Union into ETH. The amount of Ethereum traded against the pound rose sharply, although it was no different from the peaks recorded on quiet trading days at the end of 2020 and into 2021.

Following Bitcoin’s Lead, Ethereum Has a Sizable Investment Base

The site also provided charts comparing Bitcoin to the British pound and the European euro, adding that “Ether doesn’t see a comparable demand as BTC on previous currency depreciation.”

As of September 26, transactions involving Bitcoin and British pounds on exchanges amounted to $881 million, an all-time high. This was according to Finbold reports. The daily average has increased from its previous $70 million mark. Since then, the number has risen beyond the long-term norm.

At the time of writing, Bitcoin is going for $19,583. The figure represents a growth of 1.15% for the day and 1.69% over the previous week. An increasing number of investors are adopting the “HODL” method, which is responsible for the rise. Despite the uncertain market, the strategy is at a five-year high.

According to statistics from CoinMarketCap, the current price of Ethereum is around $1,346. The price has gone up 1.74 percent since the beginning of the day and 2.22 percent since seven days ago. Despite a decline in the creation of new ETH addresses, this growth has occurred. Possibly, this is a precursor to a price drop in the nearish term.

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