The action taken by the Bank of England to make urgent acquisitions of U.K. government bonds ‘could have interesting outcomes for bitcoin,’ an analyst says.
The Bank of England’s surprise move could have consequences for the world’s largest cryptocurrency, a crypto specialist warned.
The stock market rallied in the previous session after the U.K.’s central bank said it would carry out emergency purchases of U.K. government bonds amid a historic decline for the pound in an effort to “establish orderly market conditions.” The bank’s choice, according to Finder cryptocurrency expert James Edwards, “may have fascinating repercussions for bitcoin.”
‘A New Opportunity for Bitcoin’
It could see renewed interest in [bitcoin], which mostly benefited from aggressive money-printing measures throughout 2020 and 2021, he added. “If the programmed is extended, or other governments follow suit,” he said.
The price of [the bitcoin] could suddenly change depending on how other central banks react, so traders will want to pay close attention to how they react.
“It looks to have found obvious support right below the $20,000 mark for some months now, despite major fiat currencies continuing to drop against the dollar,” Edward said of bitcoin’s claim to be a safe-haven asset or inflation hedge.
The millions of impacted citizens who are witnessing the quick failure of their central banks to control inflation and combat the rising cost of living present a fresh chance for bitcoin, which may find a new audience among them, he said.
According to Edwards, “both bitcoin and cryptocurrency markets could witness a revival as traditional finance continues to struggle against macroeconomic headwinds” if central bank currencies “continue to decline badly, and quantitative easing resumes on a bigger scale.”
According to research firm Coin Gecko, at the time of the most recent check on Sept. 29, Bitcoin was down approximately 1% to $19,090, Ether, the native currency of the Ethereum blockchain, was down 1.1% to $1,303.33, and dogecoin was down slightly to $0.059
Widespread Framework
The nascent financial services sector’s first complete regulatory framework, with the elimination of middlemen and centralized entity control as its defining features, was just issued by the White House.
This methodology shows that the days when government organizations believed they could get away with ignoring digital assets and the ecosystem they support are long gone, according to Winston Ma, managing partner of Cloud Tree Ventures.
The Department of Treasury is one of them and is quickly becoming a key player in the impending cryptocurrency laws. According to him, Treasury officials have specified seven key steps they would take, including amending the Bank Secrecy Act regulations and increasing regulation and enforcement.
According to Ma, author of “Blockchain and Web3: Building the Cryptocurrency, Privacy, and Security Foundations of the Metaverse,” the Treasury will immediately conduct risk assessments on decentralized finance, followed by [nonfungible tokens].
