Experts are predicting that Bitcoin could see new all-time highs in the coming months if the UK leaves the European Union without a deal.
The possibility of a no-deal Brexit has already seen the pound slump heavily against both the Euro and the Dollar over the past few weeks.
Bitcoin has seen a change in sentiment over the past few months as it finally appeared to find a bottom at $3200 following the bear market that occurred after the $20,000 Bitcoin bubble pop in 2018. This year Bitcoin has made somewhat of a comeback and already tripled in value this year sitting in the $11,000 – $12,000 range.
Nicholas Gregory, the CEO of CommerceBlock told The Independent in an interview:
“Bitcoin has rediscovered its mojo this year with multiple mini surges but a no-deal Brexit could see a massive and unprecedented breakout. Not only will a no-deal departure from the EU create turmoil and volatility across two major fiat currencies, it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies is laid bare.”
While Bitcoin has long been considered a highly volatile market, investors are now considering the cryptocurrency as a potential safe haven, much like Gold.
In times of economic turmoil, safe-haven assets are always forced into a bullish market, this is an inevitable consequence of such times as investors flee traditional speculative investment assets and hedge into assets outside the traditional markets. You can see this by looking at the recent moves in the Gold and Silver markets which have broken out of a long-term downtrend and are currently breaking new all-time highs in many countries. Bitcoin appears to be following the same pattern.
The deadline for Brexit has been set to occur by October 31st 2019, regardless of whether a deal has been made – A no deal is predicted to cause havoc in the UK’s economy with a knock-on effect across the global markets. This could see some pretty impressive gains for Bitcoin and other safe havens such as Gold and Silver.
Get your popcorn ready and enjoy the theatre, the next few months could get very interesting – particularly for those wise enough to store their wealth in hard sound money.
