The price of bitcoin has skyrocketed over the past 24 hours amid global economic and geopolitical uncertainty.
Bitcoin rose above $ 10,000 overnight, pushing it back above the milestone it fell below after a mini flash crash in late August. Other major cryptocurrencies have seen price increases as well, including ethereum, ripple, and bitcoin cash.
A 6% rise against the US dollar accounted for almost 10% of the gains against the British pound after the Brexit unrest caused the UK currency to fall. Market analysts have previously predicted that bitcoin will hit record highs if the UK leaves the European Union without a deal.
The economic turmoil in Argentina, combined with an escalation in the trade war between the United States and China, has also helped push the price of bitcoin up, according to Marcus Swanepoel, CEO of cryptocurrency firm Luno.
“After lackluster trading over the weekend, bitcoin went against the market trend yesterday, quickly breaking through the $ 10,000 level and hitting $ 10,500,” Swanepoel said. The independent.
“Today the focus will be on Europe and Brexit developments in the UK, as well as the worsening crisis in Argentina. After Labor Day in the US, all markets are open and we can expect volumes to increase in what is normally the busiest trading month of the year. ”
The UK is expected to leave Europe on October 31, 2019, although that date may be delayed if Parliament votes to block the possibility of a no-deal exit.
Prime Minister Boris Johnson has said he plans to pull the UK out of Europe in time for the Brexit deadline, with or without a deal. If plans to block a no-deal pass, Johnson will likely call a general election before the Brexit deadline.
Such uncertainty has seen the pound drop to its lowest level against the US dollar since January 2017. Neil Wilson, chief market analyst at Markets.com, said: It’s a no-deal.
The price of bitcoin is notoriously volatile but has seen its price steadily rise throughout 2019. It has nearly tripled since the start of the year but still remains far from its all-time high of nearly $ 20,000, which it reached in late 2017.
The prospect of an economically damaging Brexit, along with rising trade tariffs between the world’s two largest economies, has contributed to the resurgence in the price of bitcoin.
Some investors are even starting to view cryptocurrency as a safe haven, similar to gold.
This is thanks to its limited supply – only 21 million bitcoins will ever exist – and the fact that it relies on a borderless, decentralized infrastructure that is less prone to the effects of a single country or market.
Nicholas Gregory, CEO of blockchain company CommerceBlock, recently said The independent that bitcoin had “rediscovered its mojo” in 2019 thanks to an increasingly unstable global economy.
“A no-deal Brexit could see a massive and unprecedented breakout,” he said.
“Not only will a no-deal departure from the EU create turmoil and volatility in two major fiat currencies, it will also trigger an identity crisis for the global system as the contingency and vulnerability of the world’s major fiat currencies will be laid bare. ”
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