Bitcoin Price Is Pushing Towards $700 As Britain Votes to Leave EU

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by Tatsiana Yablonskaya · 3 min read
Bitcoin Price Is Pushing Towards $700 As Britain Votes to Leave EU
Photo: Zach Copley/Flickr

Britain has made its decision in favor of leaving the EU, which stimulated another increase of bitcoin price.

Bitcoin price is making up $652 as Britain votes for the exit from the European Union. Reuters informs that final results of voting at the referendum showed a near 52-48 percent split for leaving.

The news aroused fears on global financial markets that the decision can have bad impact on the investment in the British economy, the 5th largest in the world.  Brexit is expected to threaten London’s role as a global financial capital and trigger uncertainty in the world’s biggest trading bloc.

“It’s a momentous day. It’s an extraordinary event and will change the course of British history,” said British Foreign Secretary Philip Hammond who had campaigned for a “Remain” vote.

The decision of the Britain at the referendum couldn’t but influenced the global markets.

Brexit was named as one of possible reasons for the bitcoin price increase that we have been observing so far. Experts explain why Britain’s leaving the EU has such a strong influence on the bitcoin – the fact that the UK exits the EU arouses uncertainty on global financial markets, which in its turn makes traders to explore alternative investments.

The Newsbtc writes: “The official results are set to be announced soon and so far the lead is in favor of a Brexit, leading to sharp declines for the British pound and European futures. This could spill over to the rest of the global markets, as weaker economic activity in the European region could weigh on demand for commodities and trade activity in other parts of the world.”

It is estimated that bitcoin price will continue its upward movement, possibly even pushing past its highs this month and creating new ones closer to $800-900.

There are several more possible reasons for bitcoin price surge.

Most experts share the opinion that the closer halving date of July 10 is, the more bitcoin price will increase. Satoshi Nakamoto, bitcoin’s creator, initially developed the cryptocurrency in such a way that bitcoin reward must be halved once in for years in order to keep a lid on inflation.

Some connect bitcoin and Chinese yuan explaining that around 95 percent of all bitcoin trading is done via Chinese exchanges. Yuan is undergoing a weakening stage now, which resulted in such a noticeable rebound in bitcoin price. Yuan has just fallen the most in two months on Monday in Shanghai.

There are fears as well that such a bitcoin price surge can be connected with trading bots. Similar situation was observed after the Mt. Gox collapse several years ago, when a trading bot pushed the bitcoin price above US$1,000. Afterwards, the price was undergoing sustainable decline during several months.

Bitcoin News, Cryptocurrency News, News
Tatsiana Yablonskaya

Taking strong interest in blockchain, cryptocurrencies, and IoT, Tatsiana Yablonskaya got deep understanding of the emerging techs believing in their potential to drive the future.

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