As probably all of you know, the majority of the UK citizens voted “Leave” on the referendum where they got a chance to express their opinion whether the Kingdom should stay or leave the European Union.
Just like many experts feared, the final results came with numerous negative effects on financial markets, while world currencies fell as well. However, in times like this the Bitcoin has always been a winner since struggling currencies always push people to look for independent solutions like gold and digital currencies.
Even global media noticed this occurrence and Quartz has already published an analysis how Brexit has caused currencies such as the Euro and the British Pound Sterling to fall, but boosted the Bitcoin. The GBP is down 6.44% against the EUR and the EUR fell 10% against the USD, the portal reports. Other reputable magazines that paid attention to Bitcoin’s reaction to the results include Bloomberg and TechCrunch; the first one called the cryptocurrency “a gainer,” while the latter provided detailed info on the price movements of the Bitcoin in the past week and during the past 24 hours.
Price Yesterday Dropped under $600; PayPal Partners with Coinbase
In order to understand Bitcoin’s price surge you need to know that yesterday the value per coin dropped under $600. As you may remember, two days ago the trading price was around $680 and then it drastically fell for about $100. That’s how traders can spot that the cryptocurrency, in fact, has considerably improved its value since Brexit results came in.
The reason for the drop was provided by MarketWatch; namely, the reputable magazine pointed out several series of recent events that obviously spooked investors and negatively affected Bitcoin’s reputation. One of the mentioned events was the cease of operations of Bitfinex; even though the exchange made a statement that there’ve been infrastructure issues, traders always fear that there’s been a safety breach; this seems to be the biggest fear of Bitcoin enthusiasts after several times already a lots of Bitcoins as well as coins in other digital currencies have been stolen.
Finally, it’s very important to mention that PayPal and Coinbase have partnered. Under the agreement, Coinbase users will be now able to sell Bitcoin and cash out to their PayPal account. Buying coins, however, is still not an option.
Indicators’ Signal Shifts; Price Constantly Improves
If you take a look at the price chart, you’ll easily notice that in the past 24 hours the price has been constantly growing. The lowest price per coin of $552.74 was noted yesterday evening, while the peak was seen early morning today and it was strong $675.32. The current trading price is $661.57. The volume has dropped a bit at $272,321,000 in comparison to its Wednesday’s value, whereas the market cap is still over the $10 billion mark.
A strong shift is seen among the technical indicators and the moving averages. With the latest changes, almost all of the indicators (10 out of 11) are pro-buy, while 11 out of 12 averages are signaling the same as well. With such a signal, it’s easy to guess that the price will keep growing; however, once its being overbought, we can expect to see it stabilising or even dropping a bit.