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Bitcoin and Ethereum Prices Retrace as Bank of England Hikes Interest Rates to Tackle Inflation

June 22 (Cointime) - Bitcoin and Ethereum prices experienced a downturn following the Bank of England's decision to raise interest rates by 50 bps to 5% in an effort to combat inflation.

The Monetary Policy Committee voted 7-2 in favor of the increase, marking the highest level in 15 years. Meanwhile, US Federal Reserve Chair Jerome Powell has indicated that further rate hikes are likely if the US economy continues on its current trajectory.

The market expects two rate hikes by the end of the year, with the probability of a 25 bps hike at the July 26 FOMC meeting jumping to 75%. As a result, treasury yields are rising and the US Dollar index is putting pressure on Bitcoin price.

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