Bitcoin continues to be a popular asset in the global market, with BTCUSD, BTCGBP, and BTCEUR emerging as the most traded Bitcoin pairs. These pairs reflect the interaction between Bitcoin and the specific economic environments of their underlying currencies, offering valuable insights into the global Bitcoin market.
Analyzing the year-to-date performance of these pairs on Bitstamp reveals that BTCEUR has delivered the highest returns at 130.39%, compared to 122.24% for BTCGBP and 120.85% for BTCUSD. This outperformance can be attributed to the euro’s weakness relative to the dollar and pound. The Eurozone’s struggles with low growth and limited monetary policy flexibility have led to the currency’s depreciation against a backdrop of dollar strength.
In the three-month window, BTCEUR continues to outperform BTCGBP and BTCUSD, with euro weakness becoming more pronounced. This decline is a result of disappointing Eurozone growth metrics, dovish signals from the European Central Bank, and geopolitical uncertainties. Meanwhile, BTCGBP has shown slightly more robust performance than BTCUSD, reflecting the pound’s relative weakness due to the UK’s economic stagnation and reduced hawkishness from the Bank of England.
Following the US election, Bitcoin’s performance against these currencies reflects the most recent macroeconomic and geopolitical developments. BTCUSD gained 42.38%, trailing behind BTCEUR and BTCGBP, which grew 46.22% and 45.87%, respectively. The dollar’s strength post-election tempered BTCUSD’s gains, while BTCEUR and BTCGBP remained largely unaffected by the political event.
The divergence in Bitcoin’s performance across these pairs also highlights the influence of fiat volatility on perceived returns. The euro and pound have been more volatile than the dollar, exaggerating Bitcoin’s price movements in EUR and GBP terms. As the Eurozone faces structural growth challenges, Bitcoin’s outperformance against the euro is expected to persist, while the pound’s slight resilience aligns with BTCGBP’s middle-ground performance.
In the short term since the US election, the USD’s strength did not entirely stifle Bitcoin’s price momentum against BTCUSD. Continued EUR and GBP weakness allowed Bitcoin to sustain its relative outperformance against BTCEUR and BTCGBP, as Eurozone and UK markets increasingly turn to Bitcoin as a hedge against depreciating fiat currencies.
Overall, Bitcoin’s performance against these major currency pairs reflects the complex interplay between global economic conditions and market dynamics. Investors can gain valuable insights by analyzing the trends and performance of these pairs to make informed decisions in the ever-evolving cryptocurrency market.