UK exit from the EU may cause growth in the cryptocurrency market

The popular OKEX cryptocurrency exchange recently suggested that the UK exit from the European Union could provide cryptocurrency investors with profitable opportunities and even be generally beneficial for the crypto space.

According to OKEX experts, the markets were affected not only by the trade war between the US and China, but also by the imminent threat of Brexit under Prime Minister Boris Johnson, who, in the eyes of the majority, increased the likelihood of Britain leaving the EU without a treaty.

The exchange quoted a report published by the British Institute for Government, which notes that it is likely that Britain will leave the EU without a deal. The potential impact of this on the global economy is currently unknown.

However, the document notes that the UK economy is already showing signs of a possible Brexit without a contract, as its manufacturing business activity index (PMI) in July remained at 48, which is a low level that has not been observed for six and a half years . CBI business optimism indicator in the third quarter of the year fell from 19 to -32, which is the weakest indicator since the end of 2016.

These factors affected the country's fiat currency, the British pound (GBP), the value of which fell to a multi-year low against the US dollar, and the yield on 10-year bonds fell to a record low of less than 0.5%. ,

Unstable markets create new opportunities for cryptocurrency

According to OKEx, the development of bitcoin is difficult to ignore, and unstable markets create new opportunities for cryptocurrencies. If the UK really leaves the EU without a deal, it can help change the regulatory framework for cryptocurrencies and blockchain- related companies, as the country will not be bound by EU rules and will likely be more proactive in promoting innovation to remain competitive.

A study by Cindicator Analysis, citing OKEx, shows that 63% of analysts surveyed believe that Brexit will remain the main source of market uncertainty, and more than 73% of those surveyed said they would add cryptocurrencies to their portfolio.

In addition, the study showed that 51% believe that the introduction of cryptocurrencies is growing in part because it helps protect themselves from uncertain economic prospects, while 15.6% noted that cryptocurrencies are still too risky to use as a hedge.

As previously reported , Bitmain, the largest Bitcoin mining conglomerate, could reach an estimated value of $ 12 billion if rumors about ordering chips for mining are accurate.

Publication date 08/26/2019
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