Tanya Abrosimova
Independent Analyst
- Bitcoin has recovered on the background of geopolitical uncertainty.
- Brexit may become a strong trigger for another bull's run.
Bitcoin has gained nearly 10% since the beginning of the week and managed to settle well above the critical $10,000. The cryptocurrency investors seem to look on the brighter side of life once again as the comments and forecasts have turned bullish.
While the capital controls in Argentina might serve as an initial trigger for the Bitcoin’s rise, there are some other geopolitical developments that may provide a boost for digital assets.
As Brexit deadline is just around the corner, many experts believe that a chaotic exit without a deal will quickly push the price of the first cryptocurrency to new historic highs amid devastating uncertainty and instability on the traditional markets.
“After lackluster trading over the weekend Bitcoin went against the market trend yesterday, quickly breaking through the US$10,000 level and reaching US$10,500. At this level bears have come back to the market but BTC is still trading at US$10,470 so far this morning. Unusually Ethereum did not follow the same pattern and has not found buyers leaving it still trading around the US$175 mark. Today the focus will be on Europe and the Brexit developments in the UK, as well as the deepening crisis in Argentina,” Marcus Swanepoel, CEO of cryptocurrency firm Luno wrote in an analytical note.
The British pound has collapsed to the lowest level since January 2017 as the uncertainty around Brexit forces investors to flee from UK markets and park their assets elsewhere. Some of them regard bitcoin as a viable alternative and a safe-haven asset similar to gold.
The prospect of an economically devastating Brexit amid global trade war escalation contributes to bitcoin’s price growth.
“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,” Nicholas Gregory, CEO of blockchain firm CommerceBlock recently commented as cited by The Independent
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