May 20, 2019
Bitcoin and the EU Elections Take Center Stage
Tomorrow, the SEC is expected to make a decision regarding the regulation of Bitcoin. Late last week, some profit taking occurred and Bitcoin is currently trading at around $8,000. Meanwhile, other cryptocurrencies are also trading with momentum before the SEC decision. Analysts are wondering if the SEC will start regulating Bitcoin. If it does, then Bitcoin will be traded on the US stock market plus, large institutions will be allowed to buy this digital currency through a regulated exchange. Speculation on other cryptocurrency regulations is likely to also increase.
In other financial news, the EU Elections will start this week. While these elections take place every 5 years, a lot of emphasis is being placed on the current elections. In the forex markets, the euro (EUR) and the British pound (GBP) could react strongly to the results. In France, if Marine La Pen’s far-right party wins, this could push the euro lower, while in the UK, if the Brexit Party wins, this could escalate pressure for a ‘hard Brexit.’ As a result, the GBP is likely to be pushed lower. Global traders and investors should prepare their accounts for high forex volatility.