Political and Economic Factors have time and again affected Bitcoin’s Price and the demand for cryptocurrencies, the latest one being no-deal Brexit. While the exact effects continue to be debated and delved upon, let us have a look at some of the politico-economic events influencing the demand of cryptocurrencies and Bitcoin price.
No Deal Brexit
Britain’s withdrawal from the European Union and the political conflict which ensues is unlikely to be solved any time soon. Interestingly, it might translate into substantial fortunes for Bitcoin investors.
UK’s pound and equity markets saw turbulence across August and early days of September. The Sterling and FTSE 100 plummeted as the October 31 deadline came closer. In an interesting turn, they suddenly displayed upward trends as the Parliament was suspended for a month to prevent MPs from creating any hindrance in the Brexit process.
Notwithstanding, the uncertain conditions prevailing over the past months, investors agreed to seek clarity, even if that meant leaving the EU without a deal.
Interestingly, through this period Bitcoin price has shown upward trends. While it remains 24% below June’s cyclical high of $13,930, it climbed back above resistance levels at $10,000 and stands at $10,616, at press time.
Nicholas Gregory, chief executive of the blockchain specialist, CommerceBlock, said he believes the turmoil caused by the Brexit debacle makes up for a strong investment case for Bitcoin. Undoubtedly, Bitcoin’s price has gone up as the Pound went South. He further alleged that no deal-Brexit can even trigger a major breakout for Bitcoin.
“The prospect of no-deal is already wreaking havoc across major fiat currencies, but if it happens we could see an unprecedented rally in Bitcoin with a surge past $20,000 a real possibility.”