{"id":402117,"date":"2019-10-23T15:28:00","date_gmt":"2019-10-23T15:28:00","guid":{"rendered":"https:\/\/wncen.com\/?p=402117"},"modified":"2019-10-23T15:28:00","modified_gmt":"2019-10-23T15:28:00","slug":"bitcoin-collapses-below-7500-after-brexit-breakthrough","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-collapses-below-7500-after-brexit-breakthrough\/","title":{"rendered":"Bitcoin Collapses below $7,500 after Brexit Breakthrough"},"content":{"rendered":"

Bitcoin took a deep dive on Wednesday to test the levels last seen in May.<\/p>\n

The benchmark cryptocurrency plunged by up to circa $566.29, or 7.65 percent, in just two hours of trading. The move downside brought bitcoin down to a session low of $7,402.20. While the price later corrected, its upside remained capped by the support-turned-resistance level of $7,500, hinting an extended bearish action.<\/p>\n

\"bitcoin,<\/a>
Bitcoin dips below $7,500 in latest bearish continuation signal | Source: TradingView.com<\/figcaption><\/figure>\n

The story was the same across the other top cryptocurrencies. Ethereum, the second-largest cryptocurrency by market cap, was down 7 percent while the third-largest XRP plunged by circa 6 percent. Litecoin, Binance Coin, and Bitcoin Cash also suffered similar setbacks. On a whole, the entire cryptocurrency market cap lost about $19 billion on a 24-hour timeline.<\/p>\n

A Random Dump after Brexit Vote?<\/h2>\n

The downside in the bitcoin and altcoin markets appeared almost a day after UK President Boris Johnson was able to secure parliamentary support to his Brexit deal. Nevertheless, the optimism did not last for too long as the House of Commons refused to get Brexit implemented on or before October 31. As a result, PM Johnson would not be able to live up to its populist promise of delivering Brexit before the said, make-believe deadline.<\/p>\n

\"FTSE<\/a>
UK’s FTSE 100 index surged more than 1.5 percent on Brexit hopes | Image credits: TradingView.com<\/figcaption><\/figure>\n

The outcome, in the long-term, appears positive for the UK, signaled by the upside performance of local equities on Tuesday and Wednesday.<\/p>\n

As Mohamed El-Erian, chief economic adviser to Allianz, said on Twitter, a good deal could\u00a0offset weakening global fundamentals” and “growing central bank ineffectiveness” to boost global equities.<\/p>\n

\n

.#UK<\/a> #currency<\/a> is up almost 1% on the day, now trading at 1.2942.<\/p>\n

Yield on 10-year government #bonds<\/a> is up 7 bps to 0.77% as #markets<\/a> re-assess to the positive #UK<\/a> #growth<\/a> prospects.<\/p>\n

Questions, and the uncertainties associated with them, now shift from design to implementation. https:\/\/t.co\/5QONblyekO<\/a><\/p>\n

— Mohamed A. El-Erian (@elerianm) October 17, 2019<\/a><\/p><\/blockquote>\n