The British Pound (GBP), formerly the world’s reserve currency, set a record low against the US Dollar (USD) on Monday, falling to $1.036. When the EUR/USD pair reached 0.95540 USD per EUR, one of the lowest values in history, the same phenomenon occurred with the Euro. The price of Bitcoin (BTC) is constant at $19,000.
This morning, the British pound was all over the news as it approached its lowest point in history. This follows the new prime minister’s Friday budget statements. Despite this rapid loss, the GBP rebounded to $1.07, but experts believe this might soon reverse as the GBP could reach parity with the USD.
Nomura predicts that the British pound will continue to decline in the near future, reaching $0.975 by the end of the year and $0.95 in the first quarter of 2023.
Some have even likened the GBP to Terra (LUNA), which collapsed to zero earlier this year, impacting investors worldwide.
Today, Bitcoin (BTC) stayed constant at around $19,000 despite a 0.3% decrease in a single day. This is a surprisingly steady day for cryptocurrencies, given their typical volatility. Other currencies, like Ethereum (ETH) and Litecoin (LTC), have also had very small price changes.
It is important to demonstrate that BTC has stayed reasonably steady despite the present market upheaval that has hit some of the world’s biggest and oldest currencies. Recent volatility has had a significant impact on the foreign exchange market, which might continue in the near future if central banks do not take prompt action.
In view of the major repricing of the GBP and other financial assets, the Bank of England has issued a statement telling the public that they are actively following market events. Market watchers anticipate the Bank of England (the central bank) might aggressively boost interest rates in the coming days to stabilize the GBP and restore investor confidence.