Through its blog, the UK government shared its Bitcoin expectations. According to the Friday blog post, the country’s government expects Bitcoin to have a parabolic move in the next coming months.
The blog post also noted that Bitcoin’s trading value essentially reacts to critical events. The writer then went on ahead to cite examples such as BTC’s drop from its all-time high by over 45% after news of China restricting crypto.
This post comes shortly after Bitcoin’s value had a significant drop of almost $10,000. However, Bitcoin was not the only crypto coin that suffered a steep decline. CoinDesk noted other crypto coins that suffered a loss of over 20% in a price index.
The poor performance of the general crypto industry began on Saturday around 04:00 UTC. The steep decline in prices came after governments and health organizations worldwide announced the outbreak of a new COVID-19 variant.
Additionally, the writer cited how El Salvador’s adoption of BTC as its legal tender positively impacted the coin’s value. The writer based Bitcoin’s parabolic move towards the cycle peak in the coming months on the historical price trends. This blog post is a far cry from the hesitance the UK government has shown toward crypto in the past.
More on the UK, BTC and Crypto
UK’s most recent interaction with crypto is the country’s effort toward developing its own digital coin. According to a statement by the country’s finance minister, there will be a formation of a new task force. The force will be part of the ‘research and exploration’ phase for a potential central bank digital currency.
The task force explores the potential risk, objectives, and opportunities a CBDC would present to the UK and notes this in a consultation paper. Consequentially, the UK’s national bank, alongside the Treasury, will carry out an assessment before deciding whether to proceed with CBDC is reached.
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The UK government also had another tango with crypto earlier this year. The government had a thorough regulatory crackdown in the crypto market and, as a result, banned Binance Markets from regulated businesses in the UK.
It is important to note that although crypto trading in Britain isn’t regulated, offering trading services in the country requires authorization.
Cryptocurrency’s Performance in Britain
Despite the hesitance of the UK’s government to accept crypto coins with open arms, the country is Europe’s top crypto hub. As of October 2021, the country recorded crypto transactions worth $170 billion.
According to a report by Chainalysis, a blockchain data platform, Europe has the most significant crypto economy in the world. Over the last year, Europe received digital coins worth over $1 billion.
As of February 2021, there was a growing 9.8 million people in the UK who own crypto coins. There are roughly 230 crypto ATMs across the country to facilitate the ever-increasing interest in matters crypto.
At the time of writing, BTC is trading at $49,273.14, a 9.44% drop within 24 hours.
