The price of Bitcoin has risen sharply over the last 24 hours. The rise seems to be fueled by the climate of economic and political uncertainty influencing the market.
The cryptocurrency rose above $10,000 again after a mini-slump to end the month of August. Ripple and Etherum are other cryptocurrencies that have benefitted from an increase in value.
Bitcoin has risen against both the dollar and pound due to the uncertainty regarding Brexit and a possible no-deal departure by the United Kingdom from the European Union. Market uncertainty has been further fueled by the trade war between the United States and China, as well as, the economic problems in Argentina.
Marcus Swanepoel is the CEO of Lino, a cryptocurrency company. Swanepoel says Bitcoin was sluggish over the weekend but then began to go against the current trends in the market and rise sharply. He says the developments with Brexit, Argentina, and the trade war between the two economic superpowers will be the main focus of investors over the next few days at least and probably for the foreseeable future.
Swanepoel says September is often one of the busiest months of the year for trading and under the current climate it is difficult to predict what can happen with the market.
The date set for the UK exit is October 31. The exit can be delayed if the parliament decides to block the no-deal departure. Prime Minister Boris Johnson has been clear about his plans to remove the UK from the European Union whether a deal is in place or not. If parliament attempts to block the exit, Johnson is expected to request a general election on the matter.
Market uncertainty had caused the pound to decrease in value against the dollar to its lowest level in over two years.
Bitcoin has been volatile over its short history but has been on the incline for most of 2019. The cryptocurrency is trading at nearly triple the value of the year’s starting point but is still a long way off of the $20,000 per coin value that was seen in 2017.
Some investors are beginning to see Bitcoin as a safe-haven now that other aspects of the market have shown so much uncertainty. The optimism regarding Bitcoin centers around its finite supply and lack of centralized control. This lack of control makes the coin less susceptible to the influences of any particular market or country.
Source: https://www.coindesk.com/bitcoin-outshines-gold-amid-risk-aversion-in-financial-markets
