For Bitcoin, the Brexit poll couldn’t have come at a more uneasy time but some good developments are taking place on the sideline.
The digital currency has been in and out of an almost three-week low on Thursday June 23 at around the $580 range which is quite worrying especially for those who still cringe in anticipation of a smooth ride as they step into its world.
Today, Thursday June 23 the United Kingdom is deciding whether to leave the European Union or not. The impending outcome is shaky as latest tracker shows it could still go either way. So is the stable point of Bitcoin price. Shaky and dicey to go either higher or lower on one point, and to stay put on the other.
This is on the backdrop of financial markets that have been roiled for weeks as opinion polls pointed to a lead for the Leave campaign though the UK stock market and sterling rallied in recent days on fresh polling suggesting British voters would opt to Remain.
Giving an outlook, Admiral Markets’ Analyst, Nenad Kerkez, presents a research which shows a winning Bremain option with the 53% (R) of votes vs 47% (L) for Brexit. This compares to four other polls conducted by YouGov 42%R/44%L, Financial Times (44%R/44%L), ORB 53%R/46%L and Survation 45%R/42%L.
A Bremain, for him, will restrict the upside while a Brexit will create possible longs in Bitcoin. “If we see a Brexit, Bitcoin should jump heavily,” he said adding that it seems to increase its value during risk off as a defensive asset.
Advisor to Wings, Dominik Zynis, shares a similar view. ”Massive BTC pump,” he says on what to expect in the case of a Brexit though with a caution. “No, but really, Brexit would take some years. It’s not a kill switch just a recommendation to parliament and Her Majesty.”
Kerkez, who is also a full time trader, thinks a Bremain would look for buy opportunities in dips in GBP/USD while Germany, a key partner for the United Kingdom, would have to brace up for the impact of Brexit on German Stock Index DAX.
On Wednesday June 22, US stocks dipped in low trading volume. The Dow Jones industrial average fell 48.9 points, or 0.27 percent, to 17,780.83, the S&P 500 lost 3.45 points, or 0.17 percent, to 2,085.45 and the Nasdaq Composite dropped 10.44 points, or 0.22 percent, to 4,833.32. The CBOE Volatility Index .VIX closed at 21.17, its highest in four months, indicating traders are more willing to pay for protection against a decline in the S&P 500.
Though a dip in the market is nothing unusual, the situation in question has some good developments on the sideline.
Circle China and other developments
On the same Wednesday, Circle payment app announced two related milestones: a $60M strategic financing from a syndicate of major Chinese strategic investors; and the formation of Circle China, a new Beijing-based company focused on bringing the benefit of open, global, blockchain-powered social payments to Chinese consumers.
That follows a Bitso and Bitwage partnership to roll out Bitcoin payroll services in Mexico to enhance remittance particularly from the US, and the Winklevoss Twins have been promoting their newly-launched Gemini U.K. bitcoin exchange and its similarity in trading between Bitcoin and gold.
PayPal has also partnered with Coinbase to enable its users to sell Bitcoin and cash out to their PayPal accounts.
While there have been suggestions that it could take between two to four weeks for the impact - if there is any - of the auctioned Bitcoin in Australia to be felt on the market (based on the actual amount paid), it is worth noting that the fluctuating Bitcoin price could be a positive for shrewd traders of the currency. However, while they could be profiting from it, such may not augur well for the long-term growth and adoption of the currency.
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