Bitcoin Could See Spikes Thanks to Brexit Anxiety

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Bitcoin Could See Spikes Thanks to Brexit Anxiety

Bitcoin Could See Spikes Thanks to Brexit AnxietyThe United Kingdom is facing one of its biggest political quandaries in modern history, and British citizens are rightfully concerned about what could happen to the pound sterling later this year. Prime Minister Theresa May is not in a position to assuage people’s fears about what could happen if the UK is forced to leave the European Union without a reasonable Brexit agreement, and this is resulting in greater interest in Bitcoin.

Trends in Bitcoin Trading

According to a recent report published by Forbes in mid-January, trading volume and account sign-up activity at the new Binance platform, which is registered in the British isle of Jersey, has been hectic in the wake of a Parliament vote against PM May’s Brexit proposal. As of January 18, the Binance Jersey operation was falling behind in terms of processing “Know Your Customer” transactions aimed to comply with British and EU finance laws. Binance is currently the most reputable exchange accepting pound sterling and euros for the purpose of trading cryptocurrency, and Bitcoin is the preferred token among British account holders.

Uncertainty over Brexit has already impacted the pound sterling, which has lost considerable value since the surprising referendum of 2016. The UK’s financial industry, which is largely concentrated in London, has been decimated by Brexit as many firms have opted for relocating their headquarters in other European cities such as Frankfurt and Paris. Over the last two years, the pound sterling has reached currency exchange levels as low as $1.21 in March 2017; after a recovery that sends GBP/USD sailing to $1.42 in April of last year, the currency has ventured below $1.25 on at least one occasion over the last 30 days.

Predicted Fall of British Markets Boosts Cryptocurrencies

As the situation stands, the Bank of England predicts that the pound sterling could lose one-quarter of its value should the UK fail to reach a deal with the EU by March 29. PM May needs approval from Parliament to proceed; otherwise, the potential of crashing out of the EU without a deal will substantially increase. Despite Bitcoin having been stuck in a bear market thus far in 2019, many British residents feel that the pound sterling is in a worse state, thus justifying investing in cryptocurrency.

Compared to the United States, the UK has not shown such great interest in Bitcoin, but now that a Brexit disaster could be right around the corner, it is not surprising to learn that BTC could prove more attractive than the pound sterling.

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