The Bank of England has decided to increase the interest rate by 0.75% — the biggest interest rate increase of the last 33 years — which resulted in a dramatic increase in Bitcoin BTC/USD trading against the British pound sterling.
The Monetary Policy Committee announced on Thursday that the Bank of England decided by a majority of 7-2 to increase interest rates to 3%. The decision — was meant to contrast the pound’s inflation of 10.1% in October.
The steep increase in interest rate resulted in the trading volumes of Bitcoin against the pound. It started increasing from Nov. 1’s £2.57 million on Nov. 2 — when rumors of the increase started spreading in the press — and culminated in a volume of £7.87 reported on Nov. 3 — an increase of over 206%.
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A recently published analysis suggests that Bitcoin — and the overall crypto market — will “get worse before getting better” with Bitcoin falling to much lower price levels before the next bull market starts in 2024.
This outlook follows Bitcoin showing a bullish sign by reporting that 121,000 Bitcoin — worth nearly $2.4 billion at the time — left cryptocurrency exchanges in the biggest outflow since June.
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