BoE becomes first major bank to raise interest rates, what it means for crypto?
The growing inflation around the globe is no secret as consumer price indices have hit new highs in both England and the United States. While the U.S feds decided to keep the interest rates unchanged and accelerate bond tapering, the Bank of England (BoE) has a different mindset.
The inflation in the UK hit a 10-year high and the BoE responded by hiking the interest rates as a measure to contain the growing inflation. It also became the first major bank to increase interest rates since the pandemic began. The nine-member Monetary Policy Committee voted 8-1 to raise Bank Rate to 0.25% from 0.1%, with external member Silvana Tenreyro providing the only dissenting voice.
Governor Andrew Bailey said,
“We’re concerned about inflation in the medium term. And we’re seeing things now that can threaten that. So that’s why we have to act,”
The no-change in interest rate by the Feds on Wednesday helped the crypto market trade-in green as the majority of the crypto assets recovered to daily highs. With BOE’s increase in interest rate, the crypto market didn’t really react much it lost the gains from Wednesday.
Can the Omicron variant trigger the next bull rally?
The crypto market had turned bearish in terms of monthly returns starting November and December looks worst as we head towards a new year. Bitcoin (BTC), the top cryptocurrency returned over $49K yesterday but failed to consolidate its position. BTC is currently trading at $47,533 with a 3% decline over the past 24-hours.
Ether (ETH), the second-largest cryptocurrency by market cap also lost $4,000 support again after reclaiming it yesterday. The altcoin is currently trading at $3,948 with eyes set on $4K. It has lost near 1.33% over the past 24-hours.
Apart from the top two cryptocurrencies, the rest of the crypto market also received a similar minor downtrend. As COVID’s third wave starts to show impact in the mainstream market, inflation hedges such as gold and silver will rise first, and just like the end of 2020, we can see a Bitcoin uprise that could extend well into 2022.
- Bitcoin Edges Higher as Fed Chair Jerome Powell Fails to Comment on Monetary Policy
- Flare Network Surpasses $43M in Bridged XRP, Expert Predicts Breakout to New ATH
- Bitcoin, Ethereum Drag Broader Crypto Market Lower Ahead of FED Powell Speech
- Breaking: Ripple Partners With Bahrain’s Fintech Bay in Push for RLUSD Adoption
- XRP News: Why Whales Sold 440M Coins in a Month Despite ETF Launch Buzz
- Solana Price Prediction as SOL DAT Company Plans 5% Supply Acquisition—Analyst Targets $1,300 Breakout
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
