🇬🇧 Bank of England sets a long road for quantitative tightening — and traders are watching the liquidity impact.
The Bank of England plans to reduce its monetary-policy gilt holdings by £368 billion by September 2034.
The remaining portfolio is expected to decline through both bond maturities and £20 billion of annual active sales. However, active sales are currently paused while the Bank reviews a possible arrangement involving the UK Treasury and Debt Management Office.
Bank Rate was held at 3.75%, with six MPC members supporting the decision, while three preferred 4%.
For crypto traders, the key point is the balance-sheet side of policy. Quantitative tightening moves bonds from the central bank toward private investors and can influence longer-term borrowing conditions and liquidity.
Interestingly, the planned annual reduction is slower than the previous year's pace.
From a trader's perspective, this is a long-term macro factor rather than an immediate BTC signal.
Do you think slower QT could eventually support risk assets, or will the liquidity drain remain a concern for crypto?
#Bitcoin #Crypto #BankOfEngland #Macro
$BTC
The Bank of England plans to reduce its monetary-policy gilt holdings by £368 billion by September 2034.
The remaining portfolio is expected to decline through both bond maturities and £20 billion of annual active sales. However, active sales are currently paused while the Bank reviews a possible arrangement involving the UK Treasury and Debt Management Office.
Bank Rate was held at 3.75%, with six MPC members supporting the decision, while three preferred 4%.
For crypto traders, the key point is the balance-sheet side of policy. Quantitative tightening moves bonds from the central bank toward private investors and can influence longer-term borrowing conditions and liquidity.
Interestingly, the planned annual reduction is slower than the previous year's pace.
From a trader's perspective, this is a long-term macro factor rather than an immediate BTC signal.
Do you think slower QT could eventually support risk assets, or will the liquidity drain remain a concern for crypto?
#Bitcoin #Crypto #BankOfEngland #Macro
$BTC
