đ„ Can Bitcoin price break out after Bank of England interest rate cut?
The Bitcoin price could see more upward momentum from the latest interest rate decision by the United Kingdomâs central bank.
On Aug. 1, The Bank of England announced an interest rate cut of 0.25% to the current 5% mark, ending one of the longest periods of heightened interest rates.
The Bitcoin price could benefit from the surprise interest rate cut since economists were split on whether the bank would cut or maintain its rate.
Easing monetary policy has historically boosted risk-on assets like Bitcoin and gold, yet the Bitcoin price remains range-bound despite the interest rate cut.
đž Bitcoin price remains subdued under $65,000 due to US monetary policy
The Bitcoin price remains subdued below the $65,000 mark despite the UKâs first rate cut in over four years.
Bitcoin fell 2.4% in the 24 hours leading up to 11:20 am UTC on Aug. 1., to trade at $64,507, after trading mostly flat for the past week, according to CoinMarketCap data.
The sluggish price action could be attributed to the United States Federal Reserveâs decision to hold its key lending rates steady in August.
However, the Bitcoin price could see significant new liquidity and upward momentum with a US rate cut in September, according to Bitfinex analysts, who told Cointelegraph:
âA rate cut in September would provide a sense of bullishness and could generally increase liquidity in the market, which will be positive for Bitcoin and other cryptocurrencies as investors seek higher returns outside traditional assets. This could lead to upward pressure on Bitcoinâs price and increased ETF inflows as investors look to capitalize on a more favorable environment for risk assets.â
đž Slowing Bitcoin ETF inflows are pressuring BTC price
The slowing inflows in the US-based spot Bitcoin exchange-traded funds (ETFs) could also explain Bitcoinâs sluggish price action.
