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Former J PMorgan executive forecasts bitcoin prices to jump in case of Brexit
The results of the UK’s European Union referendum last week saw a massive surge in bitcoin price. Many now believe that the UK’s decision to leave the trade bloc could result in the fall of the Euro and in turn boost bitcoin’s value, IBS Intelligence reported.
In an email to investors, Global Advisors Bitcoin Investment Fund (GABI) owner and former JPMorgan commodities strategist Russell Newton, wrote:
“If – or when – we see the break up of the zone and the currency, I believe Bitcoin will fill some of the vacuum. Bitcoin’s inverse correlation to weakness in fiat currency regimes around the world has been seen many times and very markedly in the run up to the Brexit.”
Both euro and pound plunged on June 24 as the results came in, while bitcoin hit a high of 683 levels (Bitstamp) on the day. The spike in bitcoin’s value has once again sparked the debate that whether the digital currency acts a safe haven in times of turmoil.
Brexit has shown that Bitcoin is becoming a safe haven for investors, just like gold.— Marc van der Chijs (@chijs) June 24, 2016
Newton expects Bitcoin price to remain robust in July, and that ether will become part of an “ecosystem of blockchain-based solutions”.
“Bitcoin and blockchain offer a future filled with creativity, functionality and indeed use cases that we cannot yet conceive,” Newton added. “I believe that Brexit will invoke the feeling, at least in the UK, that bigger, structured, controlled and mandatory management is not the way forward, in politics, life or finance.”
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