In the coming days, Bitcoin could be looking at yet another opportunity to surge beyond record levels in terms of price. The reason this time is not the Brexit or the US Presidential Elections, but a combination of both circumstances France. The upcoming French elections and the potential of France exiting the European Union have become the most widely discussed topic in the past few days.
With the French Elections about a week away, there are speculations of Front National leader, Marine Le Pen — one of the contestants in the election garnering the most number of votes in the first round. Le Pen has been vocal about both reforms in France and her anti-EU stance regarding various matters. Provided the speculations turn out to be true, with Marine Le Pen gaining a huge majority in the elections, the global markets are bound to go into shock.
Le Pen’s win in the upcoming French Presidential Elections is expected to move the country towards “Frexit”. Reports suggest that even other presidential election contestants may harbor similar Frexit designs, especially Francois Fillon. The candidates have made a promise to improve the country’s job market and economy, which they believe has fallen victim to increased globalization influenced by its position in the European Union.
However, the other side of the argument state that France may not be able to economically sustain its separation from the European Union, as the impact on its “future” independent currency will be devastating. Meanwhile, the potential exit of France from the European Union will leave it weakened, both politically and economically. France, one of the founding members of EU is also an attractive market for many European companies, who will, in turn, end up losing free-access, just like in the case of Brexit.
The accompanying uncertainty regarding the value of Francs and Euro following Frexit could see increased demand in Bitcoin among investors in Europe looking for ways to safeguard the value of their earnings. As more people start opting for Bitcoin over other traditional assets, the cryptocurrency’s value will be driven further upwards, making it profitable for both new and existing owners.