Despite all the economic and financial turmoil in the United Kingdom, bitcoin has not taken advantage of the situation and dropped even further in October, even though that period has historically been bullish for the world’s number one digital currency by market cap.
Bitcoin Should Have Risen, but the Opposite Happened
October saw the resignation of UK prime minister Liz Truss, who set a record after serving only 44 days in her post. The news brought an onslaught of new headlines, a big one being that recently outed prime minister Boris Johnson was looking to potentially stage a comeback and run for the position again at some point. We can only imagine how that would go…
Bitcoin bull Max Keiser commented in a recent interview that the circumstances surrounding Truss’ resignation were disturbing given her economic plans saw to the ultimate collapse of the British pound. Thus, many people have lost their trust and confidence not only in government, but in the institution’s ability to run things properly and implement the right monetary programs.
There’s a global central bank crisis brought on by decades of too much money printing and it’s impacting countries in different ways. In the UK, politicians are in full panic mode, and this only exacerbates the loss of confidence in the Bank of England who in turn is now panicking and ramping up bond buying and money printing. This is a vicious circle that can only end catastrophically, not only in the UK, but globally. The all-fiat money experiment that started in 1971 in America when Nixon closed the gold window has failed.
The situation involving Truss should have given rise to bitcoin. The British pound – a mega stander in the world of traditional finance – was now on the brink of falling fully and completely. Dips in fiat currency are usually what contribute to the strength of bitcoin and altcoins, but it appears the opposite occurred.
Instead, around the time that Truss announced she was leaving office, BTC experienced a further fall of just under two percent, which may not sound like much at first, but given that the asset is now trading in the $19K range from $68,000 just over a year ago, any additional losses are likely to be hard hitting.
Whales Are Taking Over
The falling price of bitcoin, it appears, is giving more whales opportunities to snatch up units quickly and dominate more of the market. Ki Young Ju – CEO of Crypto Quant – recently stated on Twitter:
Whales are accumulating BTC in Binance since the bitcoin price hit the $20K level. Binance spot trading volume dominance skyrocketed, and it is now 84 percent. The second biggest is Coinbase [at] nine percent. Not sure whether these whales are institutions using prime brokers or crypto OGs for now.
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