Britain's decision to withdraw from the EU knocked the markets out of the economic rut, pushing for the growth of alternative assets. Analysts of the British broker IG Group suggest that by December the cost of bitcoin could rise to $900.
It is reported by ForexMagnates.
The head of the analytical Department of the IG Group Chris Bush and analyst Josh Mahoney I think is quite likely scenario in which bitcoin will grow by 35-40% in comparison with today's indicators. In their opinion, investments in instruments such as bitcoin and gold may be considered by some Islands of security in a stormy ocean of the British pound and European currencies in General.
"The foreign exchange market reflects reality and is currently the best indicator of the economic reaction to Brexit, demonstrating the unattractiveness of Europe at this stage. Now to the new conditions and must adapt Central Banks. Apparently, in the coming years monetary policy from the Bank of England will remain accommodative. Currently, the projections show, with a probability of 87% that the Bank of England will lower rates in August, as well as its European counterpart, the ECB. Thus, regardless of future economic impact (Brexit – approx. ed), the pound will continue to weaken at least from the decline in interest rates.
Analysts remind that the desire to reduce risks inevitably leads to diversification. Taking this into account the continuing high volatility and low returns from traditional assets may push alternative assets.
"Gold is likely to continue its upward trajectory and rise by year end by 13%, however, as well as silver. Moreover, the popularity of alternative currencies revived after in 2014 the bubble burst and bitcoin is particularly interesting in the short term. The first years the bitcoin has risen by 55%, and the effect of the fall in the pound could raise it to a height of $900 by December", according to the IG Group.
We will remind, last week the pound sterling updated 31-year low against the dollar and the volatility of the British currency even for some time exceeded the volatility of bitcoin.
Meanwhile, bitcoin, trading most of the time after a meeting on Saturday of halving around $645, on the eve showed a small increase, reaching in some point $679,9. At the time of publication, bitcoin is trading around $667.
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