The OKEx exchange recently stated that Britain’s exit from the European Union could provide investors with excellent opportunities to make money in the cryptocurrency market and be beneficial to the entire crypto ecosystem.
In a post on Medium, OKEx remarked that markets had recently been affected not only by the US-China trade war but also by the looming threat of Brexit, now headed by Prime Minister Boris Johnson.
The effects of Brexit
The OKEX post mentions a report published by the Institute for Government on the subject of Brexit. The organisation believes that there is a high probability that the UK will leave the EU without a deal.
Part of the reason why the impact of the economy is expected to be significant is the fact that the EU is one of the country’s largest trading partners. Some figures show that half of UK exports go to countries within the EU.
These factors have devalued the country’s fiat currency, the British pound (GBP). It has seen its value fall to a multi-year low against the USD.
Markets such as gold and bitcoin strongly outperformed the FTSE 100, the country’s stock market reference index, by a large margin.
Since the announcement of the intention to leave the EU, the price of bitcoin has risen by more than 1000%. This performance is almost unmatched in traditional financial markets.
Opportunities for cryptocurrencies
As OKEx notes, bitcoin performance is difficult to ignore and there may be great opportunities in the cryptocurrency world brought about by Brexit that experienced traders can take advantage of.
“Crypto traders and traditional money managers could take advantage of these volatile conditions to ride the markets”.
A study by Cindicator Analysis, quoted by OKEx, shows that 63% of analysts surveyed believe that Brexit will continue to be a major source of uncertainty in the market. More than 73% of respondents said they would add cryptocurrencies to their investment portfolio.
The cryptocurrencies these analysts would be targeting are high capitalisation ones such as BTC, ETH and LTC.
However, 19% of respondents said they do not believe that the event will have a tangible impact on the cryptocurrency world. Another 19% believe that the impact will be negative for the crypto market.