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The Bitcoin price could see more upward momentum from the latest interest rate decision by the United Kingdom’s central bank.
On Aug. 1, The Bank of England <a href="https://x.com/bankofengland/status/1818965127594455247" target="_blank" rel="noopener nofollow">announced</a> an interest rate cut of 0.25% to the current 5% mark, ending one of the longest periods of heightened interest rates.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/6b1290ec-7ddd-412b-9c12-58d943884307.jpeg" alt="Can Bitcoin price break out after Bank of England interest rate cut?" title="">
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 Bank of England, interest rate cut. Source: <a href="https://x.com/bankofengland/status/1818965127594455247" target="_blank" rel="noopener nofollow">Bank of England</a>
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The Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) price could benefit from the surprise interest rate cut since economists were split on whether the bank would cut or maintain its rate. 
Easing monetary policy has historically boosted risk-on assets like Bitcoin and gold, yet the Bitcoin price remains range-bound despite the interest rate cut.
Related: <a href="https://cointelegraph.com/news/bitcoin-price-ultimate-700k-portfolio-allocation">Bitcoin’s ‘ultimate price’ could surpass $700K based on 3% portfolio allocation — Analyst</a>
<h2 data-ct-non-breakable="true" id="bitcoin-price-remains-subdued-under-65-000-due-to-us-monetary-policy">Bitcoin price remains subdued under $65,000 due to US monetary policy</h2>
The Bitcoin price remains subdued below the $65,000 mark despite the UK’s first rate cut in over four years.
Bitcoin fell 2.4% in the 24 hours leading up to 11:20 am UTC on Aug. 1., to trade at $64,507, after trading mostly flat for the past week, <a href="https://coinmarketcap.com/" target="_blank" rel="noopener nofollow">according</a> to CoinMarketCap data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/4786acad-1a15-4f0c-93c5-dcdb6018afb8.jpeg" alt="Can Bitcoin price break out after Bank of England interest rate cut?" title="">
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 BTC/USD, one-month chart. Source: CoinMarketCap
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The sluggish price action could be attributed to the United States Federal Reserve’s decision to hold its key lending rates steady in August.
However, the Bitcoin price could see significant new liquidity and upward momentum with a US rate cut in September, according to Bitfinex analysts, who told Cointelegraph:
<blockquote data-ct-non-breakable="true">
 “A rate cut in September would provide a sense of bullishness and could generally increase liquidity in the market, which will be positive for Bitcoin and other cryptocurrencies as investors seek higher returns outside traditional assets. This could lead to upward pressure on Bitcoin’s price and increased ETF inflows as investors look to capitalize on a more favorable environment for risk assets.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/us-debt-bitcoin-adoption-hard-money">$35T US national debt could bolster Bitcoin’s adoption as ‘hard money’</a>
<h3 data-ct-non-breakable="true" id="slowing-bitcoin-etf-inflows-are-pressuring-btc-price">Slowing Bitcoin ETF inflows are pressuring BTC price</h3>
The slowing inflows in the US-based spot Bitcoin <a href="https://cointelegraph.com/learn/different-types-of-etfs">exchange-traded funds (ETFs)</a> could also explain Bitcoin’s sluggish price action.
The US ETFs only amassed a cumulative $300,000 worth of Bitcoin on July 31, while they saw over $18.3 million worth of cumulative net outflows on July 30, <a href="https://farside.co.uk/?p=997" target="_blank" rel="noopener nofollow">according</a> to Farside Investors data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/9a878627-45f0-49f2-97c0-7d80b1f207ce.png" alt="Can Bitcoin price break out after Bank of England interest rate cut?" title="">
 <figcaption style="text-align: center;">
 Bitcoin ETF flow table (US dollars million). Source: Farside Investors
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<a href="https://cointelegraph.com/explained/what-are-etf-fund-flows-and-why-do-they-matter">ETF inflows</a> can significantly contribute to a cryptocurrency’s price appreciation. For Bitcoin, ETFs had accounted for about <a href="https://cointelegraph.com/news/bitcoin-etfs-about-75-new-investment">75% of new investment</a> in the world’s largest cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-price-prediction-ethereum-altcoins-crypto-trader-roman-hall-of-flame-cointelegraph/">Ethereum price will lag for ‘months’ as Bitcoin surges: X Hall of Flame, Roman</a>

Can Bitcoin price break out after Bank of England interest rate cut?

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