Share this article
Ex-JPMorgan Strategist: Euro Collapse Will Fuel Bitcoin's Growth
The owner of a bitcoin investment fund is arguing investors should begin preparing for the "death of the euro" following last week's 'Brexit'.
By Pete Rizzo
Updated Sep 11, 2021, 12:21 p.m. Published Jun 27, 2016, 1:38 p.m.
A bitcoin investment firm led by two former JPMorgan traders has published a note which speculates that the EU referendum in the UK could lead to the ultimate decline of the euro, thus boosting the value of the digital currency.
The comments follow positive appreciation in the price of bitcoin after the UK announced it would leave the European Union last week, an event some market observers believe allowed the non-governmental digital currency to showcase its advantages as a hedge in times of uncertainty in more traditional markets.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
As a result of the event, Global Advisors Bitcoin Investment Fund (GABI) owner Russell Newton wrote in an email to investors that it is time for them to begin preparing for the "ultimate death" of the euro currency.
Advertisement
The former JPMorgan commodities strategist wrote:
"If – or when – we see the break up of the zone and the currency, I believe bitcoin will fill some of the vacuum. Bitcoin’s inverse correlation to weakness in fiat currency regimes around the world has been seen many times and very markedly in the run up to the Brexit."
Elsewhere, Newton took aim at the traditional financial system as "inefficient" and "overregulated", pointing to the success of startups like Facebook and Amazon as reasons to be bullish about a new technology platform that could disrupt financial markets.
Newton went on to predict that bitcoin’s price will remain robust in July, and that ether, the native cryptocurrency of ethereum, will likely become part of an "ecosystem of blockchain-based solutions", though he believes bitcoin to be more resilient today.
Overall, Netwon spoke broadly about the benefits of digital currencies in the context of the financial system.
"Bitcoin and blockchain offer a future filled with creativity, functionality and indeed use cases that we cannot yet conceive," Newton continued, concluding:
"I believe that Brexit will invoke the feeling, at least in the UK, that bigger, structured, controlled and mandatory management is not the way forward, in politics, life or finance."
Correction: An earlier version of this article stated that the UK was part of the eurozone.
Cracked euro via Shutterstock
More For You
Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
More For You
This article is created to test tags being added to image overlays
Dek: This article is created to test tags being added to image overlays
What to know:
- Ethena's USDe becomes fifth stablecoin to surpass $10 billion market cap in just 609 days, while Tether's dominance continues to slip.
Top Stories
