Deeper Looks: Did Brexit Trigger The Massive Gain In Bitcoin And Gold Market Caps?

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Deeper Looks: Did Brexit Trigger The Massive Gain In Bitcoin And Gold Market Caps?
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The 24th of June, 2016, will forever be remembered as the day ‘Leave camp’ pulled ahead of the ‘Remain camp’ in Britain, marking the country’s exodus from the EU. The dynamics surrounding this debate have been so popular that many have come to know it as the “Brexit.” 

Value Gains

While some economic sectors have experienced some negative impact as a result of the British government’s efforts to fulfill the people’s will to leave the EU, some others have shown impressive signs of flourishing as a result of the same decision.

For example, Gold and Bitcoin gained in good percentages against the British Pound right after the Leave camp won the referendum. Bitcoin gained by 25% while Gold spiked by 15% – all with respect to the British Pound. 

Increased Market Cap

Before Brexit, Bitcoin had dropped below its previous $10 billion market valuation. In January 2015, Bitcoin was struggling to grow, albeit slowly upwards from a $2.8 billion market cap.

After the Leave camp won, the crypto’s market cap rose steadily, scoring a 400% increase over a period of just 18 months. By March 2017, Bitcoin was valued at around $1,000, up from the $640 figure recorded after the referendum. The crypto went on to record an all-time high of around $20,000 by the end of 2017.

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Over the course of 500 days as the UK Government prepared the roadmap for Brexit, Gold surpassed its strong resistance level at $1,400 and gained 15% against the US Dollar. 

Comparison: Bitcoin vs Gold

Since the referendum day, Bitcoin’s market cap has shot up by around 1600%, reaching a high of about $327 billion. Furthermore, its daily trading volume has achieved a $20 billion figure, an 83-fold increase up from $120 million. At the moment, Gold’s total market cap scores a cool $7 Trillion, accounting for a 43% overall increase.

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