Not so long ago, the well-known OKEX cryptocurrency exchange issued a statement that the UK exit from the European Union could provide cryptocurrency investors with attractive opportunities. Moreover, it may be beneficial for the cryptocurrency space as a whole.
An OKEX message on Medium notes that markets are under pressure not only from a trade war between the US and China, but also from the looming Brexit threat.
The UK parliament is due to return after a summer break in the second half of September, and shortly after this, intense debate will begin regarding Britain’s exit from the EU between MPs and Prime Minister Johnson.
The exchange report cites a report published by the British Institute of Public Administration, which states that the likelihood that Britain will leave the EU without an agreement is quite high. It is difficult to predict the potential impact of this event on the global economy.
In addition, the report said that the UK economy is already showing signs of a bad Brexit scenario, as its manufacturing PMI in July remained at 48. This is a low level that has not been observed for six and a half years. CBI business optimism indicator in the third quarter of this year fell from 19 to -32, this is the weakest indicator since the end of 2016.
It is assumed that the impact on the economy will be enormous, since the EU is one of the country’s largest trading partners, with half of the UK’s exports going to the Union countries.
These factors affected the country’s fiat currency – the value of the British pound (GBP) fell to a multi-year low against the US dollar, and the yield on 10-year bonds of the country fell to a record low – less than 0.5%
In recent years, safe haven assets such as gold have surpassed the FTSE 100, the country’s benchmark stock market index. Bitcoin, which is considered a means of accumulation, also surpasses them.
According to OKEx, Brexit will bring new opportunities to the crypto space, especially for experienced traders. Crypto traders and fund managers can take advantage of volatility for market maneuvers.
A study by Cindicator Analysis citing OKEx shows that 63% of analysts surveyed believe that Brexit will remain the main source of market uncertainty, and more than 73% of those surveyed said they would add cryptocurrencies to their portfolio to reduce risks.
Crypto deliveries revolve around highly capitalized digital currencies such as BTC, ETH and LTC.