The UK voted itself out of the EU in June 2016. The results were a shocker for crypto investors. They were no longer certain of their future in the next two years. The news caused the pound to drop to 1.36 up from 1.42.
Crypto prices and bitcoin in particular, rose at the same time as the Brexit result. From an average of $500-$600, bitcoin rose to $750. It’s undeniable that Brexit could have influenced the bitcoin upsurge. It could also be the reason prices shot up the following year.
2017 began particularly well for cryptocurrencies. Within the first quarter, prices rose from $800 to $1150. The trend continued for the better part of 2017 with prices reaching over $10,000 at the end of the same year.
The Effects Of Brexit
People are keen to watch how Brexit will affect things among them, European healthcare. People are anxious to know what else will be affected once Brexit is actualized. But as for now, Brexit seems to have a positive impact on the bitcoin industry.
The positive impact on bitcoin prices may still be speculative. Nobody what state the crypto market will be after October 31st 2019 when the UK leaves EU.
Crypto prices didn’t start well at the beginning of the year, although the current value is still bigger than last year’s.
Bitcoin took a 5% dip upon learning that the UK would be leaving the EU on 31st October. The euro and the pound currencies are reported to have stabled around the same time the news of Brexit broke. Things may still be different when Brexit comes to action. As for now, the UK financial markets are in limbo over the state of the nation as a banking hub.
The Future Of Bitcoin
Bitcoin may have struggled at the beginning of the year. But there is reason to believe that the remainder of the same year will be better, especially post Brexit. Bitcoin may even be the key to a prosperous post Brexit future for Britain.
CEO of deVere Group Nigel Green says that ever since the Brexit news came up, there has been a lost confidence in financial activity over the UK. The lack of confidence may intensify if the UK leaves with no deal.
Green asserts that investors are now focusing on creating innovative and well regulated crypto-focused businesses. Green believes cryptocurrencies are the best bet to reinvigorate UK’s financial services.
Cryptocurrencies are the future of money and Green believes that the UK should take advantage of the current Brexit situation to set up its own crypto friendly laws. Green believes that such policies would steer UK in a better position for progress.
Current News On Brexit
The recent appointment of Boris Johnson as UK prime minister is good news for crypto. In fact, google searches for bitcoin have risen dramatically when Boris took the seat. And why has it been the case?
You see, Johnson doesn’t seem too corporate with the EU if they don’t meet the demands that the UK is out. Analysts are therefore worried that the UK may not leave with a deal as a result.
Bitcoin is therefore becoming a safe asset in times of such a crisis. It even becomes more attractive to the investor especially after the news that UK may after all walk out with no deal.