The head of blockchain tech firm CommerceBlock says a no-deal Brexit could be the next major catalyst for Bitcoin.
In a no-deal outcome, Britain would abruptly exit the European Union on October 31st without any formal agreement on the so-called “divorce” process.
CommerceBlock CEO Nicholas Gregory told The Independent he believes the fallout could be big for BTC.
“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, it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies is laid bare.”
Simon Peters, an analyst at eToro, told the Daily Express that Bitcoin’s recent rally is tied to China’s weakening yuan, highlighting BTC’s emergence as a potential hedge against global economic turmoil.
“It’s no coincidence bitcoin’s surge over the weekend has coincided with Donald Trump’s announcement of tariffs on $300 billion worth of Chinese goods. The yuan has fallen against the dollar to levels not seen since the 2008 financial crisis and Chinese investors are casting around for alternative assets for their wealth…
Given that Chinese investors make up a large proportion of crypto investors, there’s a strong possibility some are backing bitcoin’s chances against the yuan.”
Bitcoin is down 0.6% at $11,777 according to the latest data from CoinMarketCap at time of publishing.