Britons voted in a referendum yesterday to leave the European Union (EU). The British pound plummeted to its lowest level since 1985 according to The Guardian newspaper. USA Today reported the Dow Jones tumbled 600 points in afternoon trading for a 3.4% drop.
Cryptocurrency markets react
Bitcoin reacted mildly and price was up slightly on the news. Ether took an immediate drop then substantially recovered.
The vote was referred to as “Brexit” and “Bremain” in forex circles. The vote was a close 51.9% to 48.1% decision during which torrential rains may have kept some voters away from voting. The brexit results were apparent at or before midnight June 23 2016 at 00:00 UTC.
Trading charts show Brexit effect
The two charts illustrated – one bitcoin, one ether – cover the time period of the end of voting and the tally of the voting results. The attached chart crosshairs intersect at this time. Both charts show a zoom level of 2 days charted in 30 minute candlesticks. Exchange data is from Poloniex.
Bitcoin (BTC/USDT) gradually rose higher as the leave vote became clear. The change to date is up + US$ 31.89 :
Effect of Brexit on Bitcoin price
|Bitcoin price||(weighted average)|
|19 hours later||$ 664.78|
|change in BTC||+ $ 31.89|
Ether (ETH/BTC) shows over 4000 BTC changed hands in two hours, with price plummeting sharply. The rebound followed swiftly – and came close to recovering all lost ground. In all, to date, the price of ether is approximately seventeen cents lower after the Brexit vote:
Effect of Brexit on Ether price
|Ether price||(weighted average)|
|19 hours later||0.02159175 BTC|
|change in BTC||-0.00026244 BTC|
|change in USD||$ 00.17|
Many factors affecting data
Since many factors affect the price of a digital asset it is impossible to precisely pinpoint exact effects of a political change such as Brexit. The results and charts shown do include other non-related factors.
Some critics see years of economic fallout following the vote to leave the EU. According to The Guardian, U.S. presidential hopeful Donald Trump – a self made billionaire – hailed Britain’s decision to leave the EU as a “great victory”. The presumptive Republican nominee for president said he had not only backed Brexit but successfully predicted the result, unlike Barack Obama, Hillary Clinton and even David Cameron. Trump is campaigning on the slogan “Make America Great Again” which has promise for a better life for Americans and economic recovery.