It’s been a great month for cryptocurrencies, but today we’re seeing them round off the edges, and some are suggesting that it might have to do with some geopolitical turmoil happening right now.
Marie Huillet at Cointelegraph looks this morning at Bitcoin, which is slightly down from highs around $5300 to around $5100. Ethereum is down from around $180 to around $165.
However, what those who have been paying attention to charts know is that even with the tops cut off, these numbers are wildly more favorable than where either of these coins were one month, or two months, or three months ago.
Ever since Thanksgiving, we had a crypto bloodbath. Bitcoin kept rounding down – circling the drain. People didn’t know how low it would go. It ended up going below $4000 – significantly below $4000. ETH languished in the $140s – and even lower.
So today, looking at a red one day chart, many are still fairly bullish about cryptocurrencies. As to the cause and nature of today’s decline, Huillet points out the congruity between crypto markets and European stocks suggesting that Brexit troubles maybe fueling the decline.
“In traditional markets, European markets are faltering after yesterday’s EU summit decision to grant the United Kingdom a “flextension” of up to six months for the Article 50 deadline for Brexit,” she writes. “The pan-European Stoxx 600 edged slightly lower soon after the markets opened, with sectors and major bourses pointing in opposite directions, CNBC reports.”
However, if the Brexit controversy is currently depressing crypto values, many believe this trend will reverse once Brexit is finished.
“Perhaps the most exciting result of the survey is the belief that post-Brexit Britian is likely to have frendlier crypto regulations,” wrote P. H. Madore at CCN March 29, talking about warring ideas on the impact of the UK decision. “Competing with nearby France for blockchain businesses may become a new past-time. However, up to 44% of forecasters polled disagree with this notion. They believe it could have a somewhat negative impact…”
Keep an eye on the Brexit issue as stocks and other assets fluctuate. Will the UK moves change out outcomes on crypto? Write to us and tell us what you think.