Bitcoin Billionaires Return to Center Stage Amid Sterling Turmoil

Bitcoin Billionaires Return to Center Stage Amid Sterling Turmoil

Moments of celebration have been quite rare in recent months for crypto enthusiasts.

For evangelicals, it was also hell because it’s how to carry the good word when everything seems to be falling apart.

The cryptocurrency market has already lost more than $2.3 trillion compared to the record $3 trillion it reached in November, according to data firm CoinGecko.

Bitcoin (BTC), the most popular digital currency, has collapsed. BTC is currently trading below $19,000 ($18,926.96) from $69,077.44, the highest on November 10.

Ether (ETH), the second cryptocurrency by market capitalization, is down 73.4% from its high of $4,878.26 in November.

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Added to the price crash was the liquidity crunch caused by the fall of the Luna and UST tokens. This crisis has alienated several major crypto players such as lenders Celsius Network and Voyager Digital who have filed for Chapter 11 bankruptcy. Thousands of jobs have been cut, while small investors have lost their savings.

Bad headlines are followed by bad headlines. And nothing can change things since the so-called crypto winter, a long period of low prices, began.

But all this was true until the forex market, the main competitor of cryptocurrency, began to become the center of investors’ attention. The reason for the fuss is the monetary policies of major central banks to fight inflation at its highest levels in 40 years. This stubborn inflation is causing headaches for families.

But many experts have warned that the central bank’s decisions to raise interest rates aggressively are likely to cause a recession. Due to the uncertainties, investors are liquidating risky assets for safe haven assets such as the dollar. Thus, the dollar is at its highest level against other fiat currencies such as the euro. In recent days, the British pound has fallen to its lowest level against the dollar.

On September 26, sterling fell as much as 5% against the dollar, at a historic low of $1.0325, extending declines from last week’s currency market slump that followed the “mini-budget” statement from Finance Minister Kwasi Koarting.

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That statement, unveiled in just the third week of Prime Minister Liz Truss’s new government, included $80 billion in new borrowing – the largest increase since 1972 – to fund both planned caps on consumer energy prices over the coming winter and tax cuts. The highest earners in the world’s fifth largest economy.

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The reversals of the pound, and especially the turmoil that rocked the fiat market, was what cryptocurrency advocates needed to remind investors that bitcoin and altcoins are not under the control of any central entity. According to them, this independence is what makes the difference and should encourage investors to choose crypto over fiat currencies.

โ€œThe issue of $BTC is rolling every day,โ€ said billionaire and CEO of Galaxy Digital Mike Novogratz. โ€œWith weak oversight of the economy, confidence is finally collapsing. And then the local currency is being sold hard. Looting in Turkey, Argentina and now sterling. [Fed Chair Jerome] Powell does what CB [central bank] You should and $ is seen as the safest place to be.”

The former investment banker at Goldman Sachs and a leading evangelist in the crypto space thinks things will only get worse.

“But our deficits are huge and higher rates to stop inflation will only increase the accumulation of debt. And while I call on our agents in Washington to act responsibly, I fear that politics is politics. And populism on both sides is growing. It’s hard to see things not breaking in the long run.”

โ€œBoys might think differently about cryptocurrency price movements if they measured it against global currency baskets instead of just the US dollar,โ€ said billionaire Sam Bankman-Fried, co-founder and CEO of crypto exchange

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Bankman-Fried, better known as the SBF in the crypto industry, has published a chart showing the pound’s decline.

Billionaire Michael Saylor, another Bitcoin evangelist, now reiterates that BTC is good for everyone.

โ€œThe idea that #bitcoin is not good for anyone is incredible,โ€ MicroStrategy President.

โ€œThe vast majority of public policy creates stagflation and there is not much you can do to change that. What you can do is buy #bitcoin and work hard to generate income so you can #hodl [hold] So that the rest of the world will realize that Bitcoin is the best global store of valuable assets.โ€


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