Bitcoin Shows Tenacity at $19K Despite BOE’s 50 Basis Point Interest Rate Hike (0.5%):
Yesterday was a weary one for the crypto space, as the Bank of England raised the interest rates by 50 basis points (0.5%) while attempting to fight the raging inflation.
Nevertheless, BTC’s price had remained stable, without any significant volatility, unlike what happened day-before-yesterday when the Fed did the same.
Inflation has become the talk of the day as its rate has skyrocketed in many countries in the past several months, and even UK is not excluded.
In UK, the percentage closed 10% for the month of August – levels not seen in several decades.
The central bank – the Bank of England – quickly used primarily one finance tool to try to battle the galloping inflation – increasing interest rates.
Yesterday came the latest hike as the institution raised the key interest rate by another half a percentage to 2.25%.
Although it was below expectations, but the current level is the highest it has been since the 2008 crisis.
Day- before-yesterday, the US Federal Reserve did something similar, but the interest rate hike there was 75 basis points.
That had an immediate effect on BTC’s price as the asset’s volatility reduced its price to a new three-month low.
However, the BOE’s action didn’t impact the primary cryptocurrency, at least for now, as it has remained tenacious at around $19,000.
Meanwhile, Bitcoin is trading $19285 as at the time of the report.