Bitcoin (BTC) has been lingering above $20,000 for the past 9 days, but worsening conditions from traditional markets are causing traders to doubt if the resistance will hold. On Nov. 3, the Bank of England raised interest rates by 75 basis points to 3%, its largest single hike since 1989. The risks of a prolonged recession also increased as the monetary policy committee struggled to contain inflationary pressure. The U.K. monetary authority noted that its most recent growth and inflation projections present a "very challenging" outlook for the economy. The statement from the committee added that "high energy prices and …

Desperate times call for desperate measures. The Bank of England, effectively the United Kingdom version of the Federal Reserve, has raised interest rates by the highest rate in 33 years. The Bank of England's Bank Rate, or the cost of borrowing money, rose by 0.75% to 3%. According to the Monetary Policy Committee (MPC), the Bank of England voted by a majority of 7-2 to increase interest rates to 3%. The U.K. is battling with high, double-digit inflation. The economic situation has not improved in recent months. The U.K. recorded 10.1% inflation in October, the second time in three months. …

Commodity Futures Trading Commission’s (CFTC) Christy Goldsmith Romero has pointed to the collapse of the Terra ecosystem and its flow-on effects as an example of how contagion risks within crypto markets are similar to those experienced by the traditional financial (TradFi) system during the global financial crisis (GFC) of 2008. Romero suggested in a speech given at the International Swaps and Derivatives Association’s (ISDA) Crypto Forum on Oct. 26 that increased links between crypto markets and TradFi increases the risk posed by crypto to overall financial stability, noting: “The digital asset market remains relatively small and contained from the level …

Prices in the United Kingdom continue to rise, hitting another 40-year high of 10.1%. According to figures from the U.K’s Office for National Statistics, the Consumer Prices Index (CPI) rose by 10.1% in the 12 months to September 2022, up from 9.9% in August. The 10.1% figure mirrors July’s recent high. According to ONS data, “Rising food prices made the largest upward contribution to the change in both the CPIH and CPI annual inflation rates between August and September 2022.” The BBC reported that the Ukraine war led to an increase in grain prices, also sharing that dairy products have …

This week the $20,000 resistance is proving to be stronger than expected and even after Bitcoin price rejected at this level on Sept. 27, BTC bulls still have reasons to not give up. According to the 4-month-long descending triangle, as long as the $18,500 support holds, Bitcoin price has until late October to determine whether the downtrend will continue. Bitcoin bulls might have been disappointed by the lackluster price performance as BTC has failed multiple times to break above $20,000, but macroeconomic events might trigger a rally sooner than expected. Some analysts point to the United Kingdom's unexpected intervention in …

Bitcoin (BTC) and Ethereum's native token, Ether (ETH), started the week on a depressive note as investors braced themselves for a flurry of rate hike decisions from central banks, including the U.S. Federal Reserve and Bank of England. Bitcoin price fails to hold $20,000 On Sep. 19, BTC's price has failed to regain the $20,000 psychological support zone. The BTC/USD pair slipped by 6.5% to around $18,250, while ETH dropped 4% to approximately $1,280. Their gloomy performance came as a part of a broader decline that started in mid-August, wherein BTC and ETH wiped a total of 28% and 37% …

Jon Cunliffe, deputy governor for financial stability at the Bank of England, has called for a clear regulatory framework for crypto to address risks amid the recent market downturn. In a written speech at the British High Commissioner's Residence in Singapore on Tuesday, Cunliffe said regulators needed to “get on with the job” of incorporating crypto and blockchain into existing frameworks. He cited certain events leading up to what some have called the next crypto winter, including the price of Bitcoin (BTC) losing “70% of its value since November,” the collapse of Terra (LUNA) — now called Terra Classic (LUNC), …

Bank of England (BoE) deputy governor for financial stability, Jon Cunliffe, recommended forming a set of regulations — similar to conventional financial systems — to tackle risks within the cryptocurrenc ecosystem while improving investor confidence. Speaking at a press conference, Cunliffe highlighted the recent downfall of the Terra ecosystem, pointing out that cryptocurrencies that fail to maintain their value induce stress across crypto markets. He compared his idea for a crypto regulatory framework to similar instances in traditional finance wherein regulations shelter investors from unrecoverable losses, adding: “For me, it underlines the fact that we need now to bring in …

The Bank of England has called for “enhanced” regulations of crypto to address potential risk to the country’s financial stability amid the market capitalization dropping more than $2 billion. In the BoE’s Financial Policy Committee "Financial Stability Report — July 2022," the central bank said factors including the growth of the crypto market and climate change did not pose an “immediate threat” to the United Kingdom’s financial system but had the potential to do so in the future. The committee noted that recent events in the space including extreme price volatility among cryptocurrencies, "liquidity mismatches,” weakening investor confidence in stablecoins …

The Chinese government has capitalized on the violent downturn in the crypto market by warning crypto investors that Bitcoin (BTC) prices are “heading to zero.” The South China Morning Post reported on Wednesday that the Chinese national news media agency Economic Daily had issued a warning about the largest cryptocurrency by market cap to further dissuade citizens from adopting the use of crypto. The Economic Daily report says the west is to blame for creating a highly-leveraged market that is “full of manipulation and pseudo-technology concepts,” which it said was an “important external factor” which contributes to Bitcoin’s volatility. “Bitcoin …

The Bank of England’s regulatory arm has raised its budget by $31.6 million, or 24.3 million Great British pounds, for the coming financial year. It said that costs have increased due to its growing responsibilities and preparations for “emerging risks in the financial system.” According to the latest business plan released on Wednesday by the Prudential Regulation Authority (PRA), its budget for the 2022/23 financial year is $418 million, or 320.9 million pounds, an 8.2% increase from last year. The PRA chief executive Sam Woods outlined its plan for the year ahead saying it was: “Committed to keeping pace with …

The Bank of England announced Friday that it had reached an agreement with the Massachusetts Institute of Technology Media Lab Digital Currency Initiative, or DCI, on a joint twelve-month research project on Central Bank Digital Currency, or CBDC. The bank said in a statement that the new project was for research purposes only, and not intended to develop an operational CBDC. The bank began studying CBDC in 2020, releasing a discussion paper in March of that year, which the DCI responded to with a discussion of how a CBDC could meet the objectives stated in the paper. The bank and …