If you are among the people asking yourself “how Brexit will affect the fate of Bitcoin?” you are not the only one. With the latest Bitcoin news showing that a slight recovery for the most dominant cryptocurrency is underway, there is still a lot of scrutiny regarding BTC as a network and cryptocurrency – especially in a weak economic climate like the current one.
Depending on who you ask the question, the answer to how Brexit will affect Bitcoin is different. With the UK leaving the European Union, we can expect a lot of changes to the BTC/GBP market.
The answers to these questions obviously depend on whether or not UK crashes out of the EU without a deal on October 31. If it does, it is very likely that the value of the British pound will decline on the currency markets. This may lead a lot of Brits to flock towards Bitcoin (BTC) and keep their GBP in a digital form (BTC) as a safer haven.
The truth is, how Brexit might affect Bitcoin is very different. What’s certain is the fact that Bitcoin affects as a safe haven in times of inflation and recession. If a deal is approved by the UK parliament at the eleventh hour, the crypto news may be positive for traders.
“A no-deal Brexit would shake confidence in the pound and send investors into a panicky search for safe-haven assets,” said Glen Goodman, a cryptocurrency expert and author.
At the time of writing, the UK government has secured a new withdrawal agreement with the EU. However, the chances of a no-deal Brexit are still high.
British lawmakers on Saturday voted for a new proposal to withhold support for Prime Minister Borish Johnson and the Brexit deal until formal ratification legislation has passed. This, according to analysts, is a step that will oblige him to ask the EU for a Brexit delay for three months, according to Reuters.
In either case, how Brexit may affect Bitcoin is different. What’s certain is that the markets reacted to the new agreement positively and GBP rallied against USD recently, reaching the level last seen in May 2019.
“For investors, the problem with no-deal is it makes the future for Britain much more uncertain, and of course markets hate uncertainty,” Goodman added.
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