BTC could hit record highs with no-deal Brexit

09 Aug 2019

The rising Bitcoin price may reach record highs in future months in the case of a no-deal Brexit, say cryptocurrency analysts.

The prospect of a no-deal Brexit has already led to a slump in the pound against other major currencies, including the euro and U.S. dollar.

However, Bitcoin’s value has risen by around $4,000 since June to its current price of $12,000.

The world’s largest cryptocurrency by market capitalisation is still far from its record high of $20,000 from late 2017, but crypto experts are of the opinion that geopolitical uncertainty could drive Bitcoin past this point before 2020, reports The Independent.

Nicholas Gregory, CEO of blockchain firm CommerceBlock, told The Independent: “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.”
 
As such, investors are starting to view Bitcoin as a safe-haven asset, with deVere CEO Nigel Green this week calling Bitcoin a “flight-to-safety asset during times of market uncertainty”, stating it is gaining a reputation as digital gold.

Green added: “Bitcoin is living up to its justified reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe haven asset but Bitcoin - which shares its key characteristics of being a store of value and scarcity – could dethrone gold in the future as the world becomes increasingly digitalised.

“Cryptocurrencies are now almost universally regarded as the future of money – but what has become clear this week is that they are also regarded as a safe haven in the present.”