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Marcus Sotiriou, Analyst At a Listed Digital Asset Broker global block (TSXV:BLOK).
The green sea across crypto lasted for a very short time as the market experienced some relief from the sustained selling pressure we saw yesterday.
Fears over sterling volatility and lack of certainty over the UK government’s stance on monetary policy are making headlines. This topic has caused extreme fear as to whether the British government will be able to control its currency.
However, the pound’s major sell-off was largely a technical move as traders threw out positions during illiquid hours and did not represent broader economic factors.
While many have compared this stage of the bear market to a 2008-style crash, the reality is that banks are well capitalized compared to 2008 and may need to correct prices. Hmm, maybe a crash isn’t necessary.
Looking at the situation as a whole, it’s important not to comment on a single day’s worth of data, and the UK macroeconomic situation will probably be much better in the coming months.
However, currently bank of england Today’s announcement of the resumption of quantitative easing on September 28 brings further uncertainty to the market.
While raising interest rates to tighten the market, it is simultaneously implementing quantitative easing in response to the market. The tightening terms are further juxtaposed by the Treasury Secretary’s actions recently announcing a large budget that includes tax cuts.
How does crypto fit into all this?
A lack of confidence in the Bank of England and the UK Treasury is now evident, as the market has shown with the volatile currency movements. It raises the idea that cryptocurrencies can provide a solution to this turmoil and is a way out of relying on a few select individuals to provide financial stability.
