Uniswap and Quant lead altcoin market with double-digit gains
As global currencies including the British pound tumbled amidst global market mayhem last week, Bitcoin climbed back towards $20K.
The move higher was driven by news from The Bank of England. On Wednesday, the central bank announced that it would react to the plunging pound by starting to buy bonds, prompting speculation that other global central banks would also intervene to stabilize markets. This triggered upside for Bitcoin, which is often seen as a hedge against monetary policy blunders. Yet the turmoil also provoked dire warnings from top investors, with both Stanley Druckenmiller and Citadel’s Ken Griffin forecasting a loss of faith in policymakers.
Lagging behind Bitcoin, Ethereum inched higher as German telco giant Deutsche Telekom announced the launch of its own validator. Most altcoins, however, saw lower prices. Only Uniswap and Quant managed to buck the trend with more than 10% gains each.
This Week’s Highlights
– Brits ditch pound for Bitcoin as sterling sinks
– Druckenmiller says crypto could enjoy a “renaissance”
Brits ditch pound for Bitcoin as sterling sinks
As Bitcoin held strong against economic weakness last week, British investors appeared to be treating the cryptoasset as a hedge against fiat currency volatility.
Trading volumes between Bitcoin and the pound spiked to a record high on Monday after sterling dropped to a record low against the dollar, leading analysts to suggest that investors were rushing to swap the fiat currency for the cryptoasset.
Then on Wednesday, Bitcoin moved up towards $20K as the Bank of England reacted to the volatility by announcing the purchase of bonds to prop up pension funds in the country.
Druckenmiller says crypto could enjoy a “renaissance”
According to Stanley Druckenmiller, the dark cloud drifting over global markets could have a silver lining for Bitcoin.
Speaking to CNBC last Wednesday, the famed investor warned of an impending recession, and explained that continued monetary policy blunders could give crypto “a big role in a Renaissance because people just aren’t going to trust the central banks.”
Similar sentiments about the loss of trust were echoed elsewhere, with billionaire investor Ken Griffin saying that he was not worried about financial contagion from the UK, but concerned about the loss of confidence in policy makers.
Week ahead
As we move into October, investors are bracing themselves for another “Lehman Brothers moment” amidst rumors that a banking giant is in dire straits.
Further volatility could be catalyzed by September’s US jobs data, which is set to be released on Friday.
Nevertheless, historical data for Bitcoin’s performance in October suggests we could see a better month ahead.