Bitcoin Price Went Up Amid Greek Crisis

While the Greeks face the most difficult time, bitcoin price went up to $255.

Photo: Bitcoin standing on 1 euro coin by Egor Pavlovich

Photo: Bitcoin standing on 1 euro coin by Egor Pavlovich

The Greeks are to decide not only upon their own fate soon. The whole bitcoin society can hardly wait for the results of the upcoming referendum. On the face of it there must be no connection between Greek crisis and bitcoin. But it appears that sensitive Mediterranean economy positively influences the price of bitcoin.

On Monday the highest price for bitcoin was $255 while at the beginning of June it made up $223. Experts predict the increase in the cost up to $261 in the nearest three months insisting that bitcoin owners should thank Greece for it. Due to illiquidity of bitcoin market its price can gain a few percentage points even without much buying. Let’s look into this strange interdependence.

Indeed cryptocurrencies win when state economy stagnates. The nature of digital currencies itself allows them to benefit in economically difficult for country times. It can be explained by the fact that comparing to physical currencies digital ones are not controlled by one central bank and can circulate avoiding legal reprisals.

It has been alleged quite a lot recently that bitcoin price boost is a result of unprecedented interest of the Greeks in bitcoin. But this version does not stand up to criticism. Most experts see eye to eye that even if the Greeks have serious worries about money supply in the country and panic, the rise was enabled by speculations outside the country.

Brendan O’Connor, CEO of Genesis Global Trading, is among those who foresee even more benefits for bitcoin industry in nearest future: “Bitcoin had been middling around the $235-245 range for several months, and all of the sudden this crisis escalates and you’ve gotten yourself a nice 10-point pop. Greece was likely the only factor behind the digital currency’s upward momentum. I don’t think it could be for any other reason.”

What is going on now strongly reminds of the banking collapse in Cyprus in 2013. David Bailey, the CEO at BTC Media, gives expert opinion: “I’ve heard some anecdotal stories, but overall this comes from people attributing Greece fallout to what happened to Cyprus last year. Digital currencies saw large gains during the Cypriot financial crisis in 2013.”

It will be possible to say for sure whether bitcoin faces golden time after the voting in the referendum. A yes answer will mean that Greece agrees to the terms offered by the EU, accepts the bailout and sticks to austerity measures. If most of population says no, Greece is likely to leave the EU. Both the Greeks and bitcoin enthusiasts keep their fingers crossed.

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