Bitcoin vs. GBP – Cryptocurrencies

Min Spread *
Target Spread *
Swap point Long/Short
-29852.09 / -29852.09
Nominal Value of one lot
Trading hours

Instrument description

The cryptocurrency market is a reasonably new entrant in the list of financial markets, but it offers valuable opportunities for both short term traders and long term investors to have the possibility to potentially profit.

In the cryptocurrency market, Bitcoin has a dominant position and paired with other global currencies such as USD (United States Dollar), EUR (Euro), and GBP (Great Britain Pound). But all over the world, there is certain skepticism regarding transactions in digital currencies as there is no comprehensive policy that all the countries can adopt, and there are always risks of theft and fraud where a digital transaction is concerned.

Most importantly, there is no standard metric that can be used to do the valuation of a particular cryptocurrency. The digital currency, though, has flaws, but it is based on blockchain technology that has a tremendous future ahead. Those interested in Bitcoin (BTC) pairing with Great Britain Pound (BTC) must understand the dynamics of the two currencies. The Bitcoin has the largest share in cryptocurrency, while British Pound is one of the predominant fiat currency after USD and EUR.

In the BTC/GBP, the focus is on the BTC, which is the base currency and quite volatile as compared to GBP. The average daily volatility of GBP among other Forex currencies is around 0.50% to 0.60%, while BTC’s daily volatility is 4%. Many traders also tend to side with BTC in BTC/GBP pairing as Bitcoin is known for trading in Bullish trends consistently for weeks and months, as seen in 2017 when BTC jumped to $20,000 from a mere $1000. But in 2018, BTC again returned to a value of $6000.

What is the BTC/GBP currency pair?

The Bitcoin (BTC) pairing with Great Britain Pound (GBP) is represented by ‘BTC/GBP’ where BTC is the base currency, while GBP is the counter or quote currency. The BTC/GBP pairing denotes a combination of two of the most recognized currencies in the world. Bitcoin is by far the most valued cryptocurrency, while Great Britain Pound is one of the oldest and prominent fiat currency in the world.

The BTC/GBP shows the relationship of Bitcoin with the British Pound. The BTC/GBP pair shows how many British Pounds are needed to buy one Bitcoin. The current exchange rate is 1 BTC = £7,745.

History of BTC/GBP Pair

British Pound is one of the Major currencies and the fourth most traded currency in the world after USD (United States Dollar), EUR (Euro), and JPY (Japanese Yen). GBP is one of the oldest and financially strong currencies among all the other global currencies. British Pound is said to be the third most widely held reserve currency. British Pound is issued and regularized by the Bank of England (BOE).

Bitcoin, on the other hand, works on blockchain technology where every new transaction is recorded on a special database and is held between the sender and receiver without any involvement of an intermediary. Bitcoin is a benchmark in digital currencies and was launched in 2009. BTC holds more than 70% market share, although now there are many other digital coins as well.

Bitcoin functions on a decentralized network which means transaction are accurate and fast and does not require authentication from an intermediary or banks. Bitcoin is serving as the best alternative payment network as compared to traditional means of transactions.

The Bitcoins Automated Teller Machine (ATMs) are now available in most parts of the world. There are presently more than 18 million Bitcoins in circulation. The Bitcoins are capped at 21 million, which means that only 21 million coins would be mined and kept in circulation. Almost 144 blocks are mined every day, and each block has 6.35 Bitcoins, so the average Bitcoins mined each day is 900.

In April 2010, the first starting price of Bitcoin was $0.0025, which was equal to £0.0019. But then BTC/GBP value skyrocketed and touched £14,000 in 2017. But in 2018, the exchange rate could not keep up, and the value of BTC/GBP declined 60% and reached £2,540 by January 2019.

How to analyze BTC/GBP Price Chart

The Bitcoin pairing with the British Pound is quickly becoming popular among traders who see it as valuable crypto to fiat currency pairs available in the cryptocurrency market. The GBP values usually remain stable, but it is the BTC market that offers a greater chance of opportunity due to high volatility and ease of making price speculation.

Once we examine the price chart of the BTC/GBP pair, we see that value remained in the range of £5500 to £8000 from the first week of January 2020 to the last week of February 2020. There was a sharp drop in March, and BTC/GBP pair fell to the lowest value of £3982.92 on March 16, 2020. The BTC/GBP pair surged again since May 2020 with a few slumps, and the highest value of £9383.25 was recorded on August 17, 2020.

Currently, BTC/GBP pair trades on £7,745. The Bid price is £7,737.4 while the Ask price is £7,739.2.

While trading BTC/GBP pair, you can profit by selecting both Long or Short. If you believe that the value of BTC will appreciate against GBP, then you open a long or Buy position, and likewise, if you believe the price of BTC will fall against GBP, then you open a short or Sell position.

The trend of trading BTC/GBP is increasing, but the trading volume is still low as compared to BTC/USD and BTC/EUR. The high volatile nature of the BTC/GBP market may present an opportunity with more potential as compared to the traditional Forex market.

What causes price change in the BTC/GBP pair?

The BTC/GBP pairing is unique, and various factors are taken into account when speculating the price differences. Bitcoin is a digital currency that is not governed or operated by any country, so the global political and economic factors do not influence its price. However, the factors that do impact the price of Bitcoin are its changing rules and regulation, supply and demand changes, adoption rate, and market sentiment. The value of Bitcoin can further increase in the future if mainstream financial institutions started to make transactions in Bitcoins and give specific guidelines and policies regarding cryptocurrencies.

On the contrary, the value of the British Pound is affected by rules and policies of the Bank of England, interest rates, gross domestic product (GDP), economic reports and releases, inflation, and market trends. In recent times, the value of GBP has seen constant fluctuations, more so because of England officially leaving the European Union (EU) in January 2020. The trade balances, employment rate, current political situation, and retail sales also influence the value of GBP and its pairing with Bitcoin.The information above is for education purposes only and cannot be considered as investment advice. Past performance is not reliable indicator of future results.

Available Cryptocurrency CFDs on R1investing

Symbol Description Trading hours
BTCUSD Bitcoin vs. USD 00:00-23:59 Buy Sell
BTCEUR Bitcoin vs. EUR 00:00-23:59 Buy Sell
BTCGBP Bitcoin vs. GBP 00:00-23:59 Buy Sell
ETCUSD Ethereum Classic vs. USD 00:00-23:59 Buy Sell
ETHEUR Ethereum vs. EUR 00:00-23:59 Buy Sell
ETHGBP Ethereum vs. GBP 00:00-23:59 Buy Sell
DSHUSD Dashcoin vs. USD 00:00-23:59 Buy Sell
ETCEUR Ethereum Classic vs. EUR 00:00-23:59 Buy Sell
ETCGBP Ethereum Classic vs. GBP 00:00-23:59 Buy Sell
ETHUSD Ethereum vs. USD 00:00-23:59 Buy Sell
LTCEUR Litecoin vs. EUR 00:00-23:59 Buy Sell
LTCGBP Litecoin vs. GBP 00:00-23:59 Buy Sell
LTCUSD Litecoin vs. USD 00:00-23:59 Buy Sell
BTGUSD Bitcoin Gold vs. USD 00:00-23:59 Buy Sell
DSHEUR Dashcoin vs. EUR 00:00-23:59 Buy Sell
DSHGBP Dashcoin vs. GBP 00:00-23:59 Buy Sell

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