Bitcoin Price Surges While the British Pound Falls During Brexit Fiasco
Bitcoin’s price shot up above $10,000, and other major cryptocurrencies have also seen gains. The turmoil surrounding the possibility of a no-deal Brexit has led to the fall of the British Pound.
Other major currencies such as the Euro, and the US dollar have also dropped after the defeat of Boris Johnson as members of the parliament voted to block a no-deal Brexit.
The surging price of Bitcoin is said to reach record highs in the next few months if the United Kingdom leaves the European Union without a deal. Although there is still a long way between the current price and the record high of $20,000, experts say that geopolitical uncertainty could drive Bitcoin’s price beyond that point before 2020.
Nicholas Gregory, the CEO of CommerceBlock, mentioned to The Independent:
“Bitcoin has rediscovered its mojo this year with multiple mini surges, but a no-deal Brexit could see a massive and unprecedented breakout. Not only will a no-deal departure from the EU create turmoil and volatility across two major fiat currencies, it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies is laid bare.”
In an interview with cryptocurrency firm Luno, CEO Marcus Swanepoel told The Independent:
“After lacklustre trading over the weekend, Bitcoin went against the market trend yesterday, quickly breaking through the $10,000 level and reaching $10,500. Today the focus will be on Europe and the Brexit developments in the UK, as well as the deepening crisis in Argentina.”
The recent global economic turmoil, including Brexit and the trade war between the US and China, has contributed to the increase of Bitcoin’s price. Due to its finite nature, investors are beginning to see Bitcoin as a safe-haven asset, similar to gold.
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