Bears Uphold as BOE Doubles its Temporary QE Bonds

Bears Uphold as BOE Doubles its Temporary QE Bonds
  • The crypto market has experienced a bearish sentiment lately.
  • Financial markets across the board have fallen.
  • People have questioned if the UK intends to embrace cryptocurrencies.

Looking at the cryptocurrency prices heatmap, most of the altcoins are trading in bloodshed and the worst performers of the day are Bitcoin and Ethereum, which have declined by 0.68% and 0.86%, respectively. Ripple is the top gainer of the day among the altcoins, gaining by over 0.1%.

Following this, the last week in the UK markets has been nothing but turmoil. As the price of government bonds fell, pension funds were forced to offer billions of pounds in security. To raise money, investment managers were forced to sell whatever they had, sometimes even more government bonds. 

As a result, yields went up even further, opening the door for fresh collateral calls. The Bank of England quickly came under increasing strain.

The central bank made the decision to take action and implement some modifications. Upgrading the UK government bonds to £10 billion per day until October 14 was part of this.

According to reports, a strong dollar has widespread effects on the global economy, depreciating other countries’ currencies rapidly. A rapid rise in the value of the dollar would have a severe impact on developing and emerging economies.

This action was taken in a manner that is similar to what the US has been doing with US money. Given the present market sentiment and their desire to safeguard their money from approaching financial storms, the majority of people are converting their holdings into US dollars and cryptocurrency assets. This as a result may cause the cryptocurrency market to remain bearish.

Though there have been a variety of responses to Watcher Guru’s thread on Twitter, some have questioned if the UK intends to embrace cryptocurrencies in general and GBPT in particular. Some people have even suggested that financial players should just purchase Bitcoin.

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Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

programmer & freelance writer