This event fits into a larger pattern of political instability in developed economies (e.g., UK, US debt ceiling) that erodes trust in fiat currencies. Meanwhile, Bitcoin's narrative as a non-sovereign store of value gains traction, but short-term risk aversion often drags all assets down before the flight-to-safety trade materializes.

British Pound

UK borrowing costs rose and the pound fell amid ongoing leadership drama and concerns that a Burnham-led government would increase borrowing.