Bitcoin continues to be a popular choice for traders and investors worldwide, with BTCUSD, BTCGBP, and BTCEUR emerging as the top three most traded Bitcoin pairs. These pairs reflect the dynamic interaction between Bitcoin and the underlying economic conditions of their respective currencies, providing valuable insight into the global Bitcoin market.
Analyzing the year-to-date performance of these pairs on Bitstamp, we see that BTCEUR has delivered the highest returns at 130.39%, outperforming BTCGBP at 122.24% and BTCUSD at 120.85%. This outperformance can be attributed to the euro’s weakness relative to the dollar and pound. The Eurozone’s economic challenges and limited monetary policy flexibility have weighed on the euro, amplifying Bitcoin’s gains in EUR terms.
In the three-month window, the trends remain consistent, with BTCEUR continuing to outperform BTCGBP and BTCUSD. The euro’s continued weakness against the dollar reflects disappointing growth metrics and dovish signals from the European Central Bank. Meanwhile, BTCGBP has shown slightly better performance than BTCUSD, indicating the pound’s relative weakness amid UK economic stagnation.
Following the US election, BTCUSD gained 42.38%, trailing behind BTCEUR and BTCGBP at 46.22% and 45.87%, respectively. The dollar’s strength post-election tempered BTCUSD’s gains, driven by expectations of US economic growth under the upcoming Trump administration. Meanwhile, BTCEUR and BTCGBP remained largely unaffected by the political event, with their performances driven by fiat weaknesses.
The divergence in Bitcoin’s performance across these pairs highlights the impact of fiat currency volatility on perceived returns. The euro and pound’s volatility has exaggerated Bitcoin’s price movements in EUR and GBP terms, creating the illusion of higher returns compared to BTCUSD. As the Eurozone faces structural challenges, Bitcoin’s outperformance against the euro is expected to continue.
In the short term since the US election, BTCUSD has seen steady growth despite the dollar’s strength, while BTCEUR and BTCGBP have sustained their relative outperformance due to continued EUR and GBP weakness. This trend underscores the increasing interest in Bitcoin as a hedge against depreciating fiat currencies in the Eurozone and UK markets.
Overall, Bitcoin’s standout performance in the Eurozone can be attributed to the weak euro and ongoing economic challenges, making it an attractive asset for investors seeking alternative options in a volatile market environment.