Bitcoin in minimal while the intervention of the Bank Market of the Bank of England increases the hopes of a Fed turn

The hope is that the Central Bank of the USA, eliminates its adjustment policy that has affected cryptocurrency prices.

Bitcoin (BTC) recovered from the minimum daily after the Bank of England (BOE) said that it will take measures to address the liquidity crisis in the government bond market.

The announcement generated hope that the central banks, including the Federal Reserve of the United States. Traditional assets this year.

The BOE said Wednesday morning that it will begin to buy long -term Gilts in unlimited amounts from Wednesday to stabilize the United Kingdom bond market, which recently became volatile due to concerns that the government’s plan to reduce Taxes will put their finances on an unsustainable path. The bank also said that it would suspend bond sales planned within the framework of its quantitative adjustment program.

Bitcoin bounced from its minimum daily $ 18,550 to reach $ 19,100 after the BOE intervention. Meanwhile, the 10 -year United Kingdom government bonus yield fell 28 basic points up to 4.12%, and the pound fell almost 1% to $ 1.06.

Bond purchases are generally associated with quantitative flexibility (QE), through which central banks freely print money from nowhere through the creation of reserves in their balance sheet and then use these new reserves to acquire open market values, injecting Thus effective in the system.

The BOE, the FED and other important central banks invested billions of dollars in the financial system through the collapse induced by the Cronavirus of 2020, which triggered an unprecedented bullish career in cryptocuries and traditional markets. Now, however, unbridled inflation has forced those central banks to reverse the course, which caused asset markets throughout the spectrum to drastically lower in 2022. Bitcoin has collapsed less than $ 20,000 from $ 70,000 to late 2021.

While the last promise of the Boe to buy long -term unlimited bonds seems a new episode of QE, the bank has made it clear that the measure is only temporary and aims to restore the ordered conditions. It is promised to undo the purchases once the market stabilizes. Meanwhile, some in the cryptographic community wonder if the Fed will do the same.

For now, the Treasury Secretary, Janet Yellen, at least publicly, showed little concern and said Tuesday night that the financial markets were working well and said that she did not see signs of liquidity problems.


Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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