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Amid the US-China trade war and the prospect of a no-deal Brexit, many investors and financial experts believe that Bitcoin(BTC)trade and other cryptocurrencies could be an ideal vehicle in which to park their money. Bitcoin too has witnessed unprecedented growth since the beginning of the year and some crypto analysts believe that Bitcoin could go all out and hit record highs in upcoming months.
According to prominent analysts, if Britain leaves the EU without a trade deal, it could drive Bitcoin and other cryptocurrencies significantly higher. Possibilities of a no-deal Brexit has already decreased the price of the UK pound against the US dollar and Euro, and it could go down even further if some resolutions won’t come out soon.
Talking about the price of Bitcoin, it went all the way to the bottom of around $3000 by the end of 2018; however, it managed to recover since the beginning of this year and is now trading around $11,400 at press time. Even though it is still far away from its all-time high of $20,000 in the end of 2017, experts believe that the current global situations can drive Bitcoin beyond its all-time high by the year 2020.
Nicholas Gregory, CEO of blockchain firm CommerceBlock, told The Independent:
“Bitcoin has rediscovered its mojo this year with multiple mini surges but 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, but it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies are laid bare.”
In spite of Bitcoin being highly volatile, some investors across the globe – including the chief executive of financial consultancy firm deVere Group, Nigel Green – have started to see the most popular and largest cryptocurrency as a safe-haven asset. Amid the global uncertainty of Brexit and the rising trade tensions between the US and China, investors have started to look at Bitcoin and other cryptocurrencies as an alternative investment.
Global Economic Issues Will Lead Investors to Crypto
Boris Johnson, who became prime minister of the UK, is a die-hard Brexit supporter and claims that Brexit will happen with or without a deal by 31st October 2019.
The director of the Confederation of British Industry (CBI), Carolyn Fairbairn, said in a recent op-ed in the Financial Times that a no-deal Brexit could create global economic issues.
Nicholas Gregory further said that he believes Bitcoin’s place in the global economy will alter the in nearby future whilst the current geopolitical state will propel Bitcoin and other cryptocurrencies to become much more importance from a global investment perspective.
“Come 2020, we expect an increasingly populist and politically unstable world to cement the safe-haven status of bitcoin and other cryptocurrencies more generally,” Mr. Gregory said.