There was '
Grexit' in 2015 leading to the financial crises of Greece and the possibility of the struggling nation leaving the European Union (EU).
And now instability in the eurozone is prompting the possibility of a '
Brexit', which would see the UK leaving the 28-nation European Union.
So far it has not been a big price boost for Bitcoin and other digital currencies; but may be, this is barely the beginning of serious financial and social-economic crises among the 28 EU nations no one could have imagined.
Brexit Rumors Fail to Boost Market as Bitcoin Price Steady at $420Charles Bovaird | Published on February 26, 2016 at 19:08 GMT
Despite periods of volatility, the global bitcoin market remained calm this week, gaining 1% while fluctuating between $410 and $450.
The digital currency was trading at $423.52 at 00:00 (UTC) on 26th February, up from $421.16 at 00:00 (UTC) on 19th February, according to the CoinDesk USD Bitcoin Price Index (BPI).
What may be most notable, however, is the lack of a price increase given potential macro-economic instability in the eurozone.
One geopolitical development that coincided with bitcoin’s price volatility was the possibility of aBrexit, which would see the UK leaving the 28-nation European Union (EU). The event is of interest to traders given bitcoin’s historical response to similar events, rising substantially on the rumored 'Grexit' in 2015 and emerging as an asset class in 2013 given its strong climb in response to economic uncertainties in Cyprus.
Still, there were periods of turbulence in the latest trading cycle.
The currency rose sharply on 20th February, appreciating to $443.02 by 18:00 (UTC), up from $421.33 at 00:00 (UTC) for a more than 5% gain. Bitcoin also climbed the following day, rising from $436.13 at 00:00 (UTC) to $446.74 at 07:00 (UTC). However, by 14:00 (UTC), the digital currency had fallen to $429.99.
This price turbulence continued later in the week, as bitcoin dropped from $423.34 at 00:00 (UTC) on 24th February to $411.77 at 05:00 (UTC). The digital currency quickly recovered from this dip, rising to $424.45 by 15:00 (UTC).
This compared to the seven-day period between 12th February and 19th February, when the digital currency rose from $377.82 to $421.69.
Brexit fails to stir market
While UK citizens have long been skeptical of the EU, the tension surrounding the country’s participation in the political and economic partnership has thus far not been strong enough for the nation to break free.
However, disrest has been growing, and a survey conducted in September showed 43% of participants thought the UK should remain in the EU and 40% believed the nation should leave. A separate poll done in February indicated 38% of respondents wanted to exit the 28-nation partnership, while 37% wanted to stay.
Now, the nation is looking ahead to June 23, when voters will go to the polls and participate in a referendum to decide whether the nation stays in the EU or goes its own way. The anticipation surrounding this event has created significant uncertainty, which may be providing tailwinds for bitcoin prices.
In times of market turmoil, bitcoin frequently enjoys a bump in price, as some consider it a safe haven. While the chance the UK might leave is likely placing upward pressure on the digital currency’s price, a Brexit would probably fuel sharper gains.
Arthur Hayes, co-founder and CEO of digital currency exchange BitMEX, commented on how this event could affect bitcoin prices, telling CoinDesk:
"If by June the odds of Brexit occurring are substantial, we could see a Grexit sized pump in the bitcoin price."
Read More:
http://www.coindesk.com/brexit-rumors-fail-to-spark-market-as-bitcoin-price-steady-at-420/
