Bitcoin and Ethereum prices witness retracements after the Bank of England hiked interest rates by 50 bps to 5% for the 13th straight time and reveals more hikes will come to bring inflation down to the 2% target. The larger-than-expected hike comes after the UK’s annual inflation for May stayed at 8.7% and the core inflation rate rose to 7.1%.

“Bringing inflation down is our absolute priority,” says Bank of England Governor Andrew Bailey, after a surprise 50 bps rate hike to tackle persistent inflation. The Monetary Policy Committee comprising nine members of the Bank of England has voted 7-2 in favor of an increase to 5%, marking the highest level in 15 years and the most significant change since February.

Also Read: Ripple Gets Major Payments Institution License in Singapore, XRP Price To $1

US Federal Reserve Chair Jerome Powell in a testimony to the US House Financial Services Committee on Wednesday revealed that the interest rate pause is temporary. He added that further rate hikes are likely if the US economy maintained its current course.

On Thursday, Powell in testimony to the Senate Banking Committee will make it clear that the Fed is not done hiking interest rates. The market expects two rate hikes by year-end. According to CME FedWatch Tool, the probability of a 25 bps hike at the July 26 FOMC meeting jumped to 75%.

Meanwhile, treasury yields rise as global central banks set to continue hiking interest rates. The US Dollar index (DXY) that fell below 102 is again rising towards 102.50 after BOE rate hikes, which will put some pressure on Bitcoin price.

Read More: Powell Says “Pause” Is Temporary; Expert Reveals Reason Behind Bitcoin, Ethereum, Altcoins Rally

Bitcoin and Ethereum Price To Record Correction

Bitcoin price hit a high of $30,737 in the recent rally, reaching almost to the April high of $31,000. BTC price fell below $30,000 after the Bank of England’s surprise 50 bps rate hike. However, the positive sentiment for Bitcoin to $35k still remains among traders amid accumulation by whales.

Popular analyst Michael van de Poppe predicts consolidation in the $29k-$30k range, with optimal entry at $28,500 after a correction. Price action likely to move this way as Bitcoin has strong resistance at $31,000.

Meanwhile, ETH price also fell to $1900. The 24-hour low and high are $1815 and $1932, respectively. Furthermore, the trading volume increased in the last 24 hours, indicating interest among traders.

Also Read: Elon Musk-Mark Zuckerberg “Cage Fight”: Everything You Need To Know

AD

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.