The price of bitcoin fell despite
"dovish
" macroeconomic signals, including the Bank of England's decision to cut interest rates by a quarter percentage point and indications that the U. S. Federal Reserve may follow suit in September.
On Thursday, the Bank of England cut interest rates by a quarter percentage point to 5% for the first time in the current cycle. The Bank of England became the second G7 central bank to cut interest rates this year, following the Bank of Canada's cut in June. In addition, after the U. S. Federal Reserve announced on Wednesday that it would leave interest rates unchanged, Fed Chairman Jerome Powell said it might consider cutting interest rates at its next meeting in September. Stocks reacted positively, with the Nasdaq Composite Index up 2.64% by Wednesday's close, the S&P 500 Index up 1.58%, and the Dow Jones Industrial Average 30 Index up 0.24%.
Jag Kuhner, head of derivatives at Bitfinex, said cryptocurrency investors should also take these signals positively. September's rate cut creates a bullish sentiment and generally increases market liquidity, he told The Block. This could lead to higher #bitcoin prices and increased inflows into ETFs as investors seek to take advantage of more favorable conditions for risky assets
.
digital assets continue to face significant headwinds, with the bitcoin price facing further potential selling pressure after Mt. Gox moved #BTC to a new address worth more than $2 billion late Tuesday, according to Arkham Intelligence. The transfer is part of an ongoing effort to distribute recovered funds to creditors of the now-defunct exchange.
the U. S. spot bitcoin funds also slowed, with net inflows totaling just US$ 299,000 on Wednesday.
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