Cryptocurrency value

Bitcoin Price: No-Deal Brexit “Will See Cryptocurrency Value Reach All-Time High” | The independent

The surge in the price of bitcoin could reach record highs in the coming months if the UK leaves the European Union without a deal, some cryptocurrency analysts say.

The looming prospect of a no-deal Brexit has already caused the pound to fall against other major currencies, including the euro and the US dollar.

Meanwhile, bitcoin has seen a resurgence in recent months, with its value increasing by around $ 4,000 since late June to reach its current price of $ 12,000.

It is still a long way from its record high of $ 20,000, reached in late 2017, but experts believe geopolitical uncertainty could push it past that point before 2020.

“Bitcoin rediscovered its mojo this year with several mini surges, but a no-deal Brexit could see a massive and unprecedented breakout,” said Nicholas Gregory, CEO of blockchain company CommerceBlock. The independent.

“Not only will a no-deal departure from the EU create turmoil and volatility in two major fiat currencies, but it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies are laid bare. ”

Bitcoin’s price is notoriously volatile, but some investors are starting to view it as a safe haven due to its limited supply.

Its borderless and decentralized infrastructure also means that it is less prone to the effects of a country or a single market.

Nigel Green, chief executive of financial advisory firm deVere Group, recently called bitcoin a “flight-to-security asset in times of market uncertainty,” saying it is gaining a reputation for digital gold.

Data collected by Bloomberg earlier this week seemed to reaffirm this view, as the correlation of the price of bitcoin with gold has doubled in the past three months.

Bitcoin value increased from around $ 3,000 to $ 12,000 in 2019

(CoinMarketCap)

This was facilitated by other geopolitical uncertainties in the form of mounting trade tensions between the United States and China.

“Gold, the traditional safe-haven asset, has benefited from some of this investor uncertainty,” said Simon Peters, analyst at online trading platform eToro. The independent.

“Yet bitcoin also appears to have served a similar purpose. Since Chinese investors make up a large portion of crypto investors, it is quite possible that some will support bitcoin’s odds against the yuan.

The current Brexit deadline for the UK to leave Europe is October 31, 2019, although previous dates have been postponed due to Parliament’s inability to agree on the negotiated deal by former Prime Minister Theresa May.

Boris Johnson inspects an ambulance during a visit to Boston’s Pilgrim Hospital

(AFP)

His successor, Boris Johnson, has always claimed that Brexit would take place by October 31, with or without a deal, with some warnings that it could be a disaster for the UK and global markets in general.

Carolyn Fairbairn, director of the Confederation of British Industry (CBI), said in a recent editorial in the Financial Time that a no-deal Brexit would be a “trigger in economic chaos”.

If this turns out to be true, Mr. Gregory argues that bitcoin’s place in the global economy could fundamentally change.

“In 2020, we expect an increasingly populist and politically unstable world to strengthen the safe-haven status of bitcoin and other cryptocurrencies more generally,” he said.

“And if central banks start increasing money printing again, the case of cryptocurrencies like bitcoin whose supply is capped will be further strengthened. Every time a central bank increases the money supply, it’s a new nail in the coffin of fiat. “

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