What happened to Brexit and the Bitcoin Breakout?

What happened to Brexit and the Bitcoin Breakout

Brexit and the Bitcoin

On Thursday, June 23, 2016, global markets were jolted into disarray, the likes of which the financial world hasn’t seen in many decades. Over 17 million UK citizens voted to abandon their nation’s tie with the European Union (EU) while just over sixteen million voted in favor of the “remain” group. Investors around the world watched in shock as the British pound tanked against the dollar and the Japanese yen to a level not seen since 1985.

Although much of the motivating force driving the referendum was economic, the overwhelming “leave” vote was principally driven by Britons’ fear of being overcrowded by immigrants. Under the EU agreement, member countries are bound by to an agreement to open their borders of other member countries in search of work. Now that the agreement is void, Britons now feel they have a say about who is allowed to live and work in their country.

One can’t overstate the resulting emotional turmoil in the UK. Prime Minister David Cameron, his wife by his side, stood valiantly on the front steps of 10 Downing Street in London as he announced his resignation, effective October. He announced to the press the UK now requires a Prime Minister whose sympathies are in accord with the “leave decision.”

The day after the BREXIT referendum, global stock markets lost $2 Trillion in value. Investors worldwide flocked to the safe havens of government bonds and gold which soared $65 in one day. To add to the turmoil, the Dow Jones fell over 611 points, and the S&P tanked over 76 points.

Meanwhile, bitcoin dropped to a weekly low of 550 (USD) the day of the BREXIT, and rebounded to just over 662 (USD) the following day. At the time of this article, one Bitcoin was trading for $576.33 Clearly, this dynamic activity highlights the value of bitcoin as a strong speculative opportunity during stressful financial times.

While it might be premature to think of bitcoin as a safe haven, investors would be wise to contemplate a combined investment strategy of gold and bitcoin. Gold’s safe have will serve to temper the ups and downs of bitcoins while markets roil.  This way, investors will enjoy the best elements of two very profitable investments – safety and speculative opportunity.

Bitcoin, Bullion and Brexit: Jeff Berwick on the CryptoShow

 

This move triggered bitcoin’s breakout, said Hayes, as the central bank kept … in comparison” to price moves observed as a result of the Brexit.

Country: England

Region: Europe

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