The price of bitcoin surged close to 20% over the weekend spanning 11th June and 12th June, and this robust appreciation grabbed the attention of many experts who were quick to give their two cents on the rally.
Market observers provided a wide range of explanations for this climb, including the ongoing ‘ Brexit ‘ uncertain, the rising visibility of blockchain technology and the impending halving of rewards paid to key participants in the bitcoin network.
While the possibility remains the sum of these factors could be equally as powerful as any one in isolation, we review the most common theories as to why bitcoin’s price is hitting new highs below: Fear of a ‘Brexit’
More than one expert emphasized that the looming possibility that the UK could split off from the rest of the 28-nation European Union was a major contributor to the bitcoin rally. While a number of surveys have shown the ‘ Bremain ‘ camp garnering greater support than those advocating a Brexit, a recently conducted Opinium Poll found that 52% of respondents wanted the UK to leave the EU, while 33% would prefer that it stay.
"The Brexit vote is polling at an all-time high," said Arthur Hayes, co-founder and CEO of bitcoin leverage trading platform BitMEX.
He added that there is historical precedent this could continue to be a price driver: "We all remember how Bitcoin responded when it appeared Greece would leave the EU. If Britain votes to leave, all hell will break loose. The increased uncertainty is very positive for Bitcoin and other digital currencies.” Tim Enneking, chairman of cryptocurrency investment fund EAM, also pointed to the looming potential Brexit as a potential cause of bitcoin’s recent rally.
He noted the price gains the digital currency enjoyed before in times of geopolitical turmoil, including the situations Greece […]
