Pound sterling becomes more unstable than Bitcoin after Brexit

The British pound has become more volatile than Bitcoin.

Bitcoin has long been thought to be the world’s most unstable currency – moving from being worth $2 to $1,137 in the last five years. But that wildly volatile currency is now becoming a safe refuge when compared to the fluctuations in the pound.

For a brief period this week, Bitcoin’s 10-day historical volatility – a measure of how much its price has been changing – dropped below that of the British pound.

  • 1/12

    A woman poses with a home-made European Union flag as Remain supporters gather on Park Lane in London to show their support for the EU in the wake of Brexit

    PA

  • 2/12

    Remain supporters demonstrate in Parliament Square

    PA

  • 3/12

    Tens of thousands of people gathered to protest the result of the EU referendum

    PA

  • 4/12

    A majority of people in the capital voted to remain in the European Union

    Reuters

  • 5/12

    Protesters chanted: “What do we want to do? Stay in the EU”

    PA

  • 6/12

    The march follows a similar rally in Trafalgar Square that was cancelled due to heavy rain – but which tens of thousands of people turned up to anyway

    Reuters

  • 7/12

    Britain voted to leave the European Union in a referendum by 52 per cent to 48 per cent

    Reuters

  • 8/12

    But support for the Leave campaign in urban areas and among young people was significantly lower

    Rex features

  • 9/12

    Marchers gathered at Park Lane at 11am and marched towards Parliament Square

    PA

  • 10/12

    Some protesters held up baguettes in a display of affection for our continental neighbours

    PA

  • 11/12

    The disparity between different parts of the country has promoted a four million signature petition calling for a second referendum and even a renewed push for Scotland to cede from the UK

    PA

  • 12/12

    The event’s organiser, King’s College graduate Kieran MacDermott, wrote: “We can prevent Brexit by refusing to accept the referendum as the final say and take our finger off the self-destruct button”

    Reuters

Sterling became incredibly volatile straight after the UK voted to leave the European Union on 23 June. Its value dropped sharply as soon as the results were announced, sending volatility up by more than double, and that instability has stayed high ever since.

In contrast, Bitcoin has enjoyed a relatively stable period in the days since the Brexit vote.


That has come at the same time as a huge number of people are looking to trade Bitcoin, apparently because it represents a safe haven when compared to the pound. Exchanges told Bitcoin that had seen volumes more than double in the wake of the EU referendum, particularly from people in the UK.

Bitcoin has long been regarded as one of the most unstable things to trade in the financial markets. Because of the relatively small amount of them, and the controversies and shocks that the currency has endured in its short life, it has a tendency to rise and fall dramatically by huge amounts very quickly.

The digital currency’s price was especially volatile in the run-up to and after the referendum. Its price dropped sharply the day before it was held, but began to rise again on the morning that results came in.

  • More about:
  • Brexit
  • EU referendum
  • bitcoin
  • pound sterling

Reuse content

mm

TheBitcoinNews.com – leading Bitcoin News source since 2012

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.