After falling back to higher-lows and dragging the entire crypto market with it, Bitcoin has recovered its bullish strength. Satoshi’s cryptocurrency has added up to 10.5% since the start of the month according to data from CoinGecko.
Amidst significant international uncertainty, including a falling Argentinian economy, the ongoing US-China trade war, and an undefined Brexit, the crypto market seems to benefit from the chaos. Some analysts believe that, in the event of a no-deal Brexit, Bitcoin may reach new highs.
In an interview with The Independent, CEO of crypto exchange ‘Luno’ Marcus Swanepoel, stated that both the Argentinian crisis and the ongoing trade-war contributed to Bitcoin’s price. According to him, Bitcoin broke the market trend by recently breaching the $10,000 resistance level.
Swanepoel further indicates that the market is now focused on Europe, especially on the developments in the UK. Following the American Labor Day, all markets will see an influx of trading volumes, said Swanepoel adding that September might be busiest month for trading.
UK Prime Minister Boris Johnson recently announced that the Britain will leave the European Union by the Brexit deadline, even if no deal is reached. As a reminder, the most recent deadline for the UK is 31 October 2019, by which a deal should be made. In the case of a no-deal event, the parliament may decide to hold a vote in order to prevent Britain from leaving with no established deal.
How Will Brexit Affect Bitcoin?
While the cryptocurrency market experienced a bullish rise, the British pound has weakened to its lowest rate against the US dollar since January 2017. According to the Chief market analyst of Markets.com, Neil Wilson concluded that the British pound may fall further in the case of an election, and may become progressively worse if no deal is reached by the end of October.
Concerning the yield-level of UK’s ten-year bonds, they fell to 0.5%, resulting in a new record low. While the global financial market experience low volatility due the sudden shift in global events, the British financial market has ceased with all optimism.
The UK may make a devastating move by not reaching a deal with the EU, as the European Union makes half of the UK’s exports. The British economy would face with a significant loss by being deprived of its greatest trading partner.
No Deal Brexit Could Soften Crypto Regulations
According to some views, reaching no deal could lead to less-strict crypto regulatory framework in the UK. As the EU would no longer govern the UK in terms of regulations, the island-country may decide to accept the cryptocurrency industry in order to bolster its economy. Considering that the British financial market is one of the most significant ones in the world, a crypto-friendly regulation could lead to more adoption and a rise in both volume and prices.
Bitcoin is regularly praised for being an important store-of-value option, with some calling the currency ‘digital gold’ as only 21 million coins will ever circulate in the market. Combined with the fact that anyone in any location on earth can purchase Bitcoin, a digital currency which isn’t controlled by any centralized entity, several investors bought Bitcoin for the purpose of having a safe-haven asset.
In an interview with The Independent, Nicholas Gregory from CommerceBlock stated that Bitcoin has ‘rediscovered its mojo’ this year. He specified the unstable global economy as the reason behind the rise of the cryptocurrency market. Furthermore, Gregory agreed with the argument that a no-deal Brexit would cause a havoc in both the political stage and the financial market. He additionally said that the event would result in an ‘identity crisis’ for the global system.