in

Financial Analysts Remain Optimistic About The Crypto Markets In The Midst Of Brexit

Financial Analysts Remain Optimistic About The Crypto Markets In The Midst Of Brexit
Brexit referendum UK, Public Domain Pictures
Image: Brexit referendum UK, Public Domain Pictures

Financial analysts remain optimistic about the state of the digital assets markets in the midst of Brexit. According to a new report by Cindicator, a blockchain market intelligence startup, 63% believe that the UK withdrawal from the European Union will have a positive impact on cryptocurrency prices, and 74% are considering holding cryptocurrency in their portfolio, along with other assets such as commodities, stocks and cash.

Compiled by Cindicator Analytics, a team of professional financial analysts, and Cindicator’s analytical platform, the report summarizes several key findings from a study conducted by the team to gauge the sentiment of the community on Brexit.

The study found that financial analysts are confident that, in the event of a hard Brexit, investors would turn to crypto as an alternative to the pound and will search for ways to diversify out of it into other currencies as well as store of value commodities.

They predict that businesses would experience rising costs to conduct cross-border trade, which would eventually cause a downturn in the financial markets. Investors would either invest in low-yield but reliable investments such as bonds, or find opportunities in markets with growth potential.

In contrast, 18.5% of forecasters believe that Brexit will somewhat negatively impact the crypto market, at least in the short term. This would be especially true in the event of a disorderly Brexit, which would be very damaging to the UK economy and its financial markets, and could trigger a sell-off in the stock markets. The same scenario could play out in the crypto markets in the short term, they said.

The study also assesses the sentiment of analysts on the implications of Brexit on the regulatory landscape of cryptocurrencies. 47% are optimistic that post-Brexit Britain could be inclined to take a progressive stance towards cryptocurrency regulation and enable blockchain innovations, which would increase the adoption rate of the technology.

They argue that without reliance on the EU regulatory framework, the UK could independently decide the direction of its regulatory approach to creating a more autonomous financial sector. In addition, with the prospect of jobs being lost due to Brexit, the government could seek different avenues to spur economic development and foster the innovation of new technologies.

Only a small population of forecasters (9%) believe that the UK would adopt an unfavorable approach towards regulating cryptocurrency.

Bearing analysts predict “a massive capital exodus” with businesses relocating away from the UK. A relevant example is US crypto exchange startup Coinbase, which opened a new office in Ireland in October 2018 as part of its Brexit contingency plan.   

https://coinjournal.net/financial-analysts-remain-optimistic-about-the-crypto-markets-in-the-midst-of-brexit/

Leave a Reply

Your email address will not be published. Required fields are marked *

Canadian Municipality Set to Accept Bitcoin for Property Tax Payments

Canadian Municipality Set to Accept Bitcoin for Property Tax Payments

Chinese Shipping Giant to Explore Blockchain for Upstream Supply Chain Financing

Chinese Shipping Giant to Explore Blockchain for Upstream Supply Chain Financing