Brexit risk positive for Bitcoin?

The highly anticipated Proposed referendum on United Kingdom membership of the European Union vote will be held on June 2. Currently, polls show that nearly equal numbers of many people are for remaining as compared to against the remain in the EU. This has an environment of uncertainty created that now people prompted to look for alternatives to protect their assets.

American companies and investors are no exceptions, as this not immune to the financial uncertainty that can bring the Proposed referendum on United Kingdom membership of the European Union with it. The UK is a large, globalized economy that has around the world profitable relationships. The problems of the country, relied on by the referendum are, by no means be regarded as isolated problems. Any turmoil that will bring the voting itself, will certainly leave its mark on the global level.

The effects would undoubtedly be felt in the US. Some believe that stocks of US companies are taking their sales to the British a relatively high proportion will have a fatal future when the British decide against EU. In fact, there are 30 companies in the S & P500, which generate, according to FactSet data, 10% or more of their revenue from the U.K. business.

The referendum has already prepared an impact on trade. As a result of the BREXIT concerns the commercial ended with US exchange transactions with red numbers. All major stock markets closed in negative territory. The Dow Jones Industrial Average DJIA with -0.33%, a decrease of 1.1%, the S & P500 index fell by 1.2 down and the Nasdaq Composite Index fell by 1.9% in the week.

International revenue in the S & P500 are best seen in the UK. In fact, the US share accounts for 68.8% of the S & P500 turnover, followed by China with a share of 4.9% and UK with 2.9%. This means that a large part of market risk on the BREXIT depends vote and this could lead to a financial downturn. The sectors energy, technology and materials are, according to FactSet, especially susceptible to this risk. With this large amount of financial uncertainty, which brings the popular vote with them, many turn to alternative methods to their deposits and to protect savings. One of these alternatives seems Bitcoin. Some assert that this was the reason for the recent price increase of Bitcoin. Another result of the Proposed referendum on United Kingdom membership of the European Union could be the introduction of capital controls by fluctuating countries. Should this be the case, more people could pounce on Bitcoin.

Despite all the uncertainty and concerns emanating from Proposed referendum on United Kingdom membership of the European Union, there is a positive way. Bitcoin could very well benefit from this situation. The price increase, whether influenced by the vote or not, could be a good breakout moment for cryptocurrency.

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