Why Going Long on the Bitcoin Price is a Better Bet Than Holding the British Pound Right now
Being long on the bitcoin price is a sounder strategy today than being long on the British Pound as the currency touches historic lows against the US dollar.
Unfortunately for Brits, this is not a trading decision because if you get paid in GBP you are long sterling.
Foreigners are fleeing from British assets. Investors are demanding a high price to fund the gigantic and growing current account deficit of 8% – about a year ago it was 2%.
If you are resident in the UK, there's not much you can do dodge the bullet, apart from asking your employers to pay you in the mighty dollar, which keeps getting stronger, or in bitcoin. Bitcoin? Really! Bear with me.
Crypto prices are being pressured lower but that feels like a sideshow when all asset classes are falling in value.
At the centre of the current turmoil is the UK economy and the British Pound.
Indeed, at times like this, holders of crypto could be forgiven for displaying a little schadenfreude.
Having grown used to batting away uninformed comment about the supposed vacuousness of the digital asset class, it is with a wry smile that the gyrations in stocks, bonds, currencies and commodities are observed.
Markets are starting to feel disorderly.
GBP/USD is at an all time low of 1.0373 and WTI crude benchmark is down 37% since mid June. UK Bond yields (gilts) rocketed and that helped cable (GBP/USD) move back to 1.07.
And the market is pricing in 200 basis points hike from the Bank of England by November as it tries to stem the unfolding collapse of the currency. These are staggering numbers.
Meanwhile, the Bank of England "hasn't decided whether to comment in order to stabilize the market" and calls for an emergency rate hike grow more louder and more insistent.
With central
Read more on cryptonews.com
