Britain's Brexit postponed to the end of October this year, the finale, the collective bloody cryptocurrency market has a chance to turn over?
Deferred extension, the price of the currency fell
On April 10th, the EU held an emergency summit to discuss the postponement of Brexit in the UK. EU leaders agreed to extend the final date of Brexit to October 31.
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The cryptocurrency market responded immediately – Bitcoin fell 5%, the mainstream currency was collectively baptized, and the recent "Xiaoyangchun" market sent by the recent increase was quickly retreated. Today, the market continues its previous day's decline. After Bitcoin lost its $5,000 mark, it still fell. The current top 100 currencies have only risen.
According to the market view, on the one hand, the fall is either due to the market or overbought .
According to GTI Global Strength Indicator, technical analysis indicators, Bitcoin’s breakthrough of $5,000 last week was the biggest overbought since it rose to nearly $20,000 in December 2017.
On the other hand, the news of the Brexit delay has undoubtedly exacerbated the sharp drop in cryptocurrencies such as Bitcoin .
Earlier, the Brexit expects to reach a "no agreement to leave the EU" to make the market risk aversion rise, investors poured into the cryptocurrency market to seek safe haven, but now the Brexit extension has been a nail, the expected failure, bitcoin risk avoidance function disappears As a result, the price of BTC fell, which led to the overall “blood loss” of the currency market.
At the end of June 2016, the United Kingdom held a historic referendum and decided to withdraw from the EU. The Brexit process has taken nearly three years to date and has ushered in key points in recent weeks. In March of this year, the British Parliament voted on "no agreement to leave the EU" and "deferred Brexit".
In this regard, there are great differences in opinion in the UK. If it really turns into a situation of no agreement to leave the European Union, the relationship between the two sides will be broken, and the so-called transition period of Brexit will cease to exist. Trade between the UK and the EU will come to an abrupt end, and there will be no fixed relationship between the two sides.
"No agreement to leave the EU" will undoubtedly cause a huge impact on the world currency market, the pound is facing obvious depreciation pressure, and the euro zone is unlikely to retreat. In fact, since the results of the referendum, the pound has fallen sharply against the dollar and against the euro.
At the same time that the "no agreement to leave the EU" cloud over the UK and European markets, the cryptocurrency market began to break out of the "Xiaoyangchun" market, and the "coin king" BTC rose more than 30% in a week. Given that the pound and the euro may face an intricate and turbulent future, Bitcoin can be a safe haven against market turmoil to some extent , and analysts have called for cryptocurrency as a substitute for the pound and the euro.
However, the “no agreement to leave the EU” has now been rejected by the parliament, and the Brexit process has been postponed until the end of October.
The UK still has six months to prepare for Brexit, and the pound and the euro are temporarily relieved. Prior to the economic uncertainty brought about by Brexit, Bitcoin was once regarded as a substitute for French currency, but the current Brexit situation is relatively stable, and investors have begun to consider the volatility of the bitcoin skyrocketing in the past two years. .
Fall or normal callback
However, the market decline in the past two days may be just a normal correction .
Digital currency analyst Alex Krüger said in a tweet that although Bitcoin is currently facing severe selling pressure, it has formed multiple layers of strong support at the $4,000 point, and the possibility of a callback below $4,000 is minimal.
Financial reporter Camila Russo also said that in the latest round of rising prices, the trading volume of cryptocurrencies such as Bitcoin and Ethereum surged, reaching the peak of the 2017 bull market.
The recent surge in the encryption market has also seen a significant increase in the number of users in the industry, and the popularity of cryptocurrencies and blockchains in other areas is increasing. Compared with last year's chilly winter, the encryption market is either trying to open a new round of bull market.
Author: Gu Mengting; Source: onion block chain
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