Bitcoin Steady as BOE Hikes Rates by 50 Basis Points; 'Reverse Currency Wars' Gain Steam




  • In Business
  • 2022-09-22 11:30:57Z
  • By CoinDesk
 

Bitcoin (BTC) held steady on Thursday after the Bank of England (BOE) raised its benchmark interest rates by 50 basis points (bps) to 2.25% in a continued fight against inflation.

The BOE's second straight 50 bps move came a day after the Federal Reserve delivered its third consecutive 75 bps rate hike and signaled a higher terminal rate or peak rate of 4.6%.

The BOE said the inflation peak is likely to be lower than projected in August, at just under 11% and maintained that the policy is not on a preset path.

The Swiss National Bank also lifted its borrowing cost by 75 basis points early during the day, exiting the negative interest rate policy. Meanwhile, Japan intervened in the foreign exchange markets to stall the yen slide.

The coordinated tightening, which began early this year, represents reverse currency wars - a race among central bankers to raise rates and support their respective fiat currencies to keep inflation in check.

The ongoing reverse currency wars indicate the path of last resistance for risk assets, including cryptocurrencies, is on the downside. Some analysts, however, believe the crypto market has already taken a bearing and there is little downside left.

"Even if central banks tighten monetary policy further, the situation will not worsen more, for the current performance of crypto assets is terrible enough," Griffin Ardern, volatility trader from crypto asset management firm Blofin, told CoinDesk.

Bitcoin changed hands at $19,080 at press time, up 3% for the day, according to CoinDesk data.

COMMENTS

More Related News

US Jobs at Cruising Speed May Keep Up Pressure on Fed: Eco Week
US Jobs at Cruising Speed May Keep Up Pressure on Fed: Eco Week

(Bloomberg) -- Friday's US jobs report is projected to show a labor market at cruising speed in September, with more moderate but still-healthy payrolls...

World Economy Roiled by Simultaneous Shocks Echoing 2007 Anxiety
World Economy Roiled by Simultaneous Shocks Echoing 2007 Anxiety

(Bloomberg) -- The world economy is showing signs of a rapid downshift as it contends with a series of shocks -- some of them self-inflicted by policymakers ...

Liberal Arts Colleges Show the
Liberal Arts Colleges Show the 'Inherent Interdisciplinary' Nature of Web3

A traditional liberal arts education may not yet afford students the ability to exclusively major in cryptocurrency. However, because it's an...

Downgrade of Apple stock triggers sharp tech stock sell-off
Downgrade of Apple stock triggers sharp tech stock sell-off

Bank of America analyst said "weaker consumer demand" will prompt analysts to cut their Apple earnings estimates in coming quarters.

Swiss franc not highly valued - SNB
Swiss franc not highly valued - SNB's Jordan

The Swiss franc is not highly valued despite its nominal rise, Swiss National Bank Chairman Thomas Jordan told a Swiss newspaper, adding the central bank...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business