Crypto performs better than traditional markets, as Bitcoin strengthens against USD and GBP

Experts have begun to notice that the digital asset market is increasingly separating itself from the traditional market. It is assumed that the main reason is that significant cryptocurrencies are becoming more stable and robust, even against a rising dollar. 

It is reported that amid the chaos of the dollar, companies in the S&P 500 Index have lost 1,70% over the five days, and the Nasdaq Index has lost 1,31%. These cannot be said about crypto assets. For example, Bitcoin rose on 0,24% during five days, despite the ongoing bear market.

It also was not without some records. Analysts found that on September 28, the US dollar index, which shows the relative value of the USD against other major currencies, traded at its highest level in 10 years but fell after that. The result was that due to the US Federal Reserve’s aggressive anti-inflationary policies, the euro was worth less than the dollar, and emerging market currencies fell even lower. 

Against this backdrop, investor’s interest in cryptocurrencies is growing. Galaxy Digital CEO Mike Novogratz said this loyalty might be because most forced sellers left the market over the summer. 

“We’re in this weird equilibrium where there are a few buyers and a few sellers, and there’s not that energy in the market like you’re seeing in the equity market or the bond market where you have to sell, right?” he said.

According to other experts in the field, when cryptocurrency separates from the macro economy is only a matter of time, especially after the sharp sell-off that followed the Three Arrows collapse and the CeFi contagion. 

At the same time, Bitcoin strengthened against the British pound, renewing the historical maximum. Analysts believe that the United Kingdom’s interest in BTC will proliferate, and the reason for this is the instability of the fiat currency. 

As Reddit user sith_happens noticed, the EUR/BTC volume increased by 85% over the last month, and the USD/BTC pair volume soared by 67%, according to the author’s research and data from TradingView. The British pound fell by almost 25% against the dollar. 

“Meanwhile, Bitfinex reported a substantial surge in volume and trading activity for the BTC/GBP pair, which market monitors say highlighted the potential for the leading cryptocurrency to profit from ‘apparent fiat currency weakness,” — he said. 

There is a chance that the gap will widen even more in October. But there’s no point in guessing; we’ll soon find out, and as usual, the buidlbee editorial staff will keep you informed.