Bitcoin price drops below $600 as 'Brexit' hopes falter

Today, Bitcoin dropped $100 in just five hours, a 15% drop to $551.

The trend shows a continuation of the recent price correction that took Bitcoin to $774 on June 18, with market watchers suggesting that Bitcoin is beginning to be ‘overbought’ after reaching a two-year high.

Market observers still think so as prices tumbled during the day. Blockchain consultant George Samman said bitcoin prices had grown 'too fast' this month and as a result price support factors are now waning.

However, there are reports that the decline is due to the increased possibility of the UK remaining in the European Union (Bremain). The results of the Brexit and Brexit referendums will be officially announced late Thursday in the US time, Friday morning in the UK time, and around 2 pm on Friday Beijing time.

The comments echoed the widespread belief that Bitcoin is a 'safe haven' asset that can benefit in times of macroeconomic uncertainty, has great advantages as an investment vehicle, and its value is best demonstrated in global markets.

For example, traders have pointed to Brexit and uncertainty over the Chinese economy as factors that pushed bitcoin prices to a 28-month high in June.

Crypto Currency Fund chairman Tim Enneking, investor and entrepreneur Vinny Lingham, and Bitcoin leveraged trading platform BitMEX CEO and co-founder Arthur Hayes all said the upcoming Brexit referendum was responsible for the bitcoin price crash.

Hayes said:

“The drop in Bitcoin price below $600 suggests that many traders believe that ‘Remain’ has the upper hand. According to various telephone polls, support for ‘Leave’ and ‘Remain’ is currently evenly split.”

Hayes predicts that if the UK votes to leave the EU, the price of Bitcoin may rise back to $700, and if it ultimately votes to remain in the EU, the price of Bitcoin will hover around $550.

In turn, Saman believes that the $560 price level may be maintained in the future. He believes that $560 is a key indicator that can represent trader confidence and determine future price changes.

However, Lingham took a more positive stance, expressing optimism about the price of Bitcoin following the Brexit vote, believing that prices could soon return to the $600-$700 range.