- The BTC/GBP price jumped to the highest level since June last year.
- The Bank of England decided to hike interest rates by 0.25%.
- It hinted that it will implement more rate hikes if needed.
The BTC to GBP price darted higher on Thursday as investors reacted to the latest interest rate decision by the Bank of England (BOE) and the Federal Reserve. The BTCGBP pair jumped to a high of 23,574, the highest point since June 10 last year. On the other hand, the BTC/USD price soared to a high of 29,000.
Bank of England decision
The Bank of England delivered its second interest rate decision of the year on Thursday. As was widely expected, the bank decided to hike interest rates by 0.25% as it balanced the need to fight inflation and to ensure financial stability. It brought the official cash rate to 4.25%, the highest level in more than a decade.
In the accompanying statement, the BoE noted that more interest rates were needed to fight the stubbornly high inflation. Analysts now believe that the bank will hike by another 0.25% and then hit a strategic pause as it assesses the impact of the previous hikes. The statement added:
“The MPC will continue to monitor closely indications of persistent inflationary pressures, including the tightness of labour market conditions and the behaviour of wage growth and services inflation. If there were to be evidence of more persistent pressures, then further tightening in monetary policy would be required.”
Read more: How to buy Bitcoin.
The BoE interest rate decision came at an important time for the UK and the global economy. Data published on Wednesday showed that UK’s inflation jumped sharply in February. The headline consumer price index rose to 10.2%, bucking a trend that has been going on for three months. It remains at the highest level in decades.
At the same time, the global banking industry is in turmoil following the collapse of key banks like Credit Suisse and Silicon Valley Bank. On the positive side, UK’s banks like Lloyds, Barclays, and NatWest have been spared from the current crisis.
The BTC to GBP price also reacted to the latest interest rate decision by the Federal Reserve. As I wrote in this article, the Fed hiked by 0.25% and insisted that more hikes were coming.
BTC/GBP forecast
The daily chart shows that the BTC to GBP has been in a strong bullish trend in the past few days. It has managed to move above the key resistance point at 20,666, the highest point on February 21 and August 15. It has also formed a golden cross as the 200-day and 50-day moving averages have made a bullish crossover.
Therefore, I suspect that the BTC/GBP pair will continue rising as buyers target the key resistance point at 25,000. If this happens, Bitcoin will likely rise to $30,000 in the coming days.
