Bank of England Cuts Rates, Raises Concerns On Crypto Market Impact
The Bank of England has lowered interest rates for the third time since August, a recession in the cryptocurrency market where leading cryptocurrencies such as Bitcoin have suffered huge losses. The bank announced a 25 basis point reduction, reducing the base rate from 4.75% to 4.5% based on market expectations. The Bank of England raised inflation forecasts for 2025, 2026 and 2027. The hawkish stance of the Monetary Policy Committee raises speculation about its potential impact on the cryptocurrency market. The Bank of England’s actions are in stark contrast to the U.S. Federal Reserve’s decision to remain stable. Given the hawkish stance of the central bank, investors may shy away from risky assets such as cryptocurrencies, which could trigger panic selling and further downturns in the cryptocurrency market.
