How Does Bitcoin Compare to Fiat Currencies?

Bitcoin tumbles with fiat currencies, but remains slightly ahead at a -1% price return in Q3 2022

Bitcoin (BTC) and fiat currencies both have been performing poorly against the US Dollar. While fiat currencies saw a drop between 3% to 7% by the end of Q3 2022, BTC dipped only 1%, and has thus managed to outperform other major fiat currencies in Q3 2022.

GBP ends the quarter with an -8% price return

In particular, GBP saw a drop of 12% at its low, ending the quarter 8% down. This stemmed from the British government's planned tax cuts, which has since been scrapped. Additionally, across the world, central banks have followed the U.S. Federal Reserve in raising interest rates, in a bid to stem capital outflows, while fighting against rising inflation.

BTC’s mid-quarter rally succumbs to bearish macroeconomic conditions

Overall, BTC ended the quarter on a muted note. While it did see an upward swing in late July, early August alongside equities, these gains were soon erased in light of increased hawkishness by the Federal Reserve. In September, Bitcoin faced a minor run-up in anticipation of the Ethereum Merge, but this was curtailed with announcements of high inflation rates in the US. Throughout the previous quarters, Bitcoin did experience a major drop in price, with a loss in value of 58% between January to September 2022.

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Curious to know out more about the crypto landscape? Read our Q3 2022 Cryptocurrency Report.