In June 2016, an unprecedented referendum saw the United Kingdom vote to leave the European Union by a majority of 51.9% to 48.1%. Since then, Brexit – the term coined to describe Britain’s departure from the EU – has been a subject of huge controversy within the Houses of Parliament and in the country at large. The UK triggered Article 50 to begin its departure plans from the EU, but failure to build consensus within Parliament has seen Brexit delayed by at least six weeks.
If MPs eventually follow through with the referendum result and Brexit occurs, what will the impact be on other financial markets such as the burgeoning cryptocurrency sector?
Brexit’s likely effect on the cryptocurrency market
To explore the likely effect of Brexit on the cryptocurrency markets, it’s a good idea to first get a handle on how the leading cryptocurrency markets fared during the outcome of the initial UK referendum. The value of the original and highest-value cryptocurrency, Bitcoin, fell considerably on the outcome of the Leave…