Skip to main content

UK Economy Setback And Bitcoin’s Resilience

Bitcoin was born in early 2009, in the aftermath of a financial crisis, but until this year it had never actually been through one.

Here’s how that played out: Bitcoin plunged in March as the coronavirus pandemic spread, then quickly bounced back as market optimism returned along with trillions of dollars of monetary stimulus.

Now, cryptocurrency traders may learn how bitcoin reacts as a new sense of pessimism sets in: Hopes that the global economy will snap back in a V-shaped recovery are diminishing quickly.

Figures released Tuesday by the U.K. Office of National Statistics showed that the world’s sixth-biggest economy’s recovery is coming much slower than analysts, including the Bank of England’s chief economist, had expected.The monthly gross domestic product grew just 1.8% in May, well below the 5.5% clip expected by analysts. The pace of growth represented a fraction of the near-25% drop in GDP since the start of the pandemic, the sharpest in three centuries.

The question for cryptocurrency traders is whether bitcoin would sell-off if the markets took another leg down, or if it’s more likely to rally due to expectations of fresh money injections from central banks and governments. Bitcoin is seen by many investors as a hedge against inflation, and unchecked money printing could theoretically reduce the purchasing power of major currencies like the U.S. dollar and the British pound.

"The economy was still a quarter smaller in May than in February", said Jonathan Athow, a deputy national statistician for the ONS. Lockdown restrictions meant key parts of the economy "emained in the doldrums, with a number of areas seeing further declines".

A second coronavirus wave this winter could put the U.K. economy under even more stress and cause long-term damage, analysts fear.

Read more:


MoonX has built 'World's Fastest Trading & Banking Ecosystem' and enabling blockchain excellence to conquer the cost, control & compliance like never before! Incorporated as an engineering powerhouse for fintech excellence, MoonX is making trading and banking in modern financial markets speedy, secure, scalable, and smart with the power of enterprise standard financial technologies. MoonX has developed cutting-edge "Blockchain Technology" capabilities to lead the way to a disruptive future powered by transparency, security, decentralization, and productivity. By meticulously crafting bespoke blockchain solutions using continuous testing, we drive quantum leaps in efficiency and innovation to set higher industry benchmarks for Enterprises & Governments. Currently, the fintech startup offers a suite of exchange technology solutions customized for banks (BFSI), payment service providers, stock/crypto exchanges, CBDC, IT security services, manufacturing, and more. Come, Let's explore the future of blockchain with MoonX and create value for you, your clients, and the world around us!