No-deal Brexit to send Bitcoin to the stratosphere
|- Geopolitical factors have become strong catalysts for Bitcoin.
- No-deal Brexit will create preconditions for a strong Bitcoin growth.
While Bitcoin is still well below its all-time high of $20,000 hit at the end of 2017, some experts believe that the first digital currency is poised for solid gains due to geopolitical landscape and macroeconomic uncertainty. According to Nicholas Gregory, CEO of blockchain firm CommerceBlock, BTC may set a new maximum before 2020.
“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, but it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies is laid bare.” ” he said in the interview withThe Independent.
This positive stance is shared by Nigel Green, the chief executive of financial consultancy firm deVere Group. He pointed out that Bitcoin tended to grow during times of market uncertainty, which turns it in a safe-haven asset. The latest research performed by Bloomberg experts supports this view.
US-China trading war and global monetary policy easing are considered as the key factors behind Bitcoin’s rise this year. However, Nicholas Gregory points out to another risk factor that may serve as a trigger for another bull’s run on the cryptocurrency market.
Britain is about to exit the EU and the risks of no-deal Brexit are growing fast. According to Carolyn Fairbairn, the director of the Confederation of British Industry (CBI), this outcome will become “tripwire into economic chaos.”
If this scenario is played out, Bitcoin’s role in the global economy may change significantly.
“Come 2020, we expect an increasingly populist and politically unstable world to cement the safe-haven status of bitcoin and other cryptocurrencies more generally,” Nicholas Gregory from CommerceBlock says.
The current Brexit deadline is set for 31 October, 2019.
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