One of the downsides of having a representative of the rich occupy the position of a leader is that it will always lead to a situation where they ignore the poor and help the rich. Liz Truss started her Premier Minister career with a series of questionable decisions that were received with a lot of animosity from her constituents. The UK is facing a harsh winter with energy prices already soaring, but the UK government seems to be interested in preserving the interests of wealthy individuals.
The reaction from the population was more than expected
The British pound has been tumbling down for several days now. The decline started right after the government announced its plans to cut taxes for wealthier individuals and corporations while increasing energy price estimates for the winter. At the same time, the Central Bank of the country has taken a very passive position stating that it will be observing the situation and may act by increasing national rates when it deems necessary to do so.
These actions led to a shock in the market with many people losing faith in the strength of the UK’s fiat currency. Many metrics indicate that people are turning their heads to Bitcoin as trading volumes have been soaring while British Pound contracted on all fronts losing roughly 21% after three days of trading against the US dollar.
The Chinese Yuan has been feeling rocky as well during this period. It dipped to $0.137 on September 28 but managed to stabilize. It lost just 0.01% compared to September 22 as of the time of writing. Nevertheless, the situation around these two important fiat currencies is uncertain at best.
BTC is doing surprisingly fine
While BTC experienced its fair share of volatility over the week, it has been performing well, especially when compared to the British Pound and Chinese Yuan. Trading volumes are up 67% in September. The price has stabilized at over $19.5K despite the chaos that the Forex market has been experiencing with the Pound and Yuan falling uncontrollably for several days.