Bitcoin Dips as Bank of England Raises Rates – Trustnodes
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Bitcoin fell further today to a low of $36,400 from $37,200 before somewhat recovering to $36,700.
One reason might be the decision of the Bank of England (BoE) to raise rates again by 0.25% to 0.5%.
It was a unanimous decision at 5-4, with minority members wanting an even higher rise by 0.5% to 0.75%.
“Further rate rises in March and May now look very likely,” says ING’s James Smith.
This is the first time since 2004 that the Bank of England has raised rates back to back with the pound slightly gaining on the dollar today by 0.3%.
Inflation is expected to come down this spring after rising to 7% and is caused by the rise in gas and oil prices, as well as supply chain issues amidst rising demand BoE said.
“People are facing a larger than usual increase in the cost of living. That includes higher petrol prices and utility bills. This means they will have less to spend on other things. But we still expect the UK economy to grow over the next few years,” the statement said.
They’ve also began reducing corporate and government bond purchases by no longer re-investing maturing assets.
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