Bitcoin Price Watch; Responding With A Safe Haven

So it looks as though the UK is set to leave the European Union, after its people voted in a slim, but important, majority on the side of the leave campaign. We have said a few times that bitcoin might play a part as a safe haven asset. On a few occasions over the past couple of years, this has proven accurate. Price has gained a global economic uncertainty pushes people to transfer value from one asset, a riskier one, to another, a safer one. Traditionally, this has been to US dollar, then gold. Bitcoin is gaining in credibility among the less mainstream financial space, and this increase has boosted its popularity as a safe haven. So, if this is true, the UK vote should have boosted the bitcoin price, based on the concurrent decline in the value of the Sterling and global equities. Take a look at the chart to see what happened overnight.

Screen Shot 2016-06-24 at 12.09.49

Screen Shot 2016-06-24 at 12.09.49

As the chart shows, action overnight supported this hypothesis, and price has now essentially reversed off the back of the vote.

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Read more ... source: NewsBTC USA