Bitcoin Reaches $4,400 after the Independence Referendum in Catalonia

Spain is currently going through some of the toughest time in their history as a democracy. Catalonia, a region in Spain, held an independence referendum on Sunday and this referendum caused a lot of turmoil in the country. Many people were injured by the police as they attempted to cast their vote for the independence and many are calling that referendum illegal and non-obliging.

After the vote count, Catalonia officials announced that 90 percent of people who had voted in that referendum said that they want to be an independent country. These kinds of turmoil often have some consequences that do not get to be seen or reported. These events usually affect financial markets all over the world and in the majority of those cases, the value of those arkets drops.

Rising Once Again

However, that was not the case with the digital currency market as the value of almost all digital currencies has been rising since Sunday. Bitcoin, for example, once again breached the $4,000 level and the value of Bitcoin is currently $4,400. Comparing that value to the most recent drop, it can be seen that the rate of Bitcoin is 45 percent higher.

Many experts were baffled by this turn of events and rarely any one of them was able to explain and to find a reason why Bitcoin was rising in the midst of the political turmoil that was hitting Iberian Peninsula and especially Spain. Experts didn’t record any significant movement of other financial markets as a consequence of that referendum and it seems that only digital currencies are gaining value.

Many experts actually believe that the rise in value has very little to do with the Catalonia and their referendum for independence. The biggest indicator for that is the fact that the value of Bitcoin and some other digital currencies was rising even before the referendum. Because of that, those experts believe that Bitcoin would reach $4,400 with or without a referendum in Catalonia.

Uncertainty Spreading

Usually, in cases like these, we often see an uncertainty in the markets all over the world. As soon as the referendum started, that uncertainty began to spread in the markets in Spain as well as in the rest of the world. Majority of economic experts believe that this crisis in Spain will affect the global economy as well as it is expected that shares of many companies will drop in the following days as the political uncertainty grows in the country.

As we have mentioned, there were no big changes in the markets so far but the uncertainty about the future of Spain and whether or not Catalonia will remain a part of Spain is leading some investors to reconsider their investments for the upcoming period. On the other hand, in that kind of situation, Bitcoin flourishes and while other currencies in the market might lose some percentage of their value, Bitcoin will be raising its value in the upcoming period as well.

So far, Bitcoin has proven to be resilient to many different challenges, especially after China banned all digital currency exchanges. Because of that, experts believe that Bitcoin is stronger than ever even though there was a time when the value of Bitcoin was over $5,000.