Bank of England lowers rates and the U.S could be next in September.
Some interesting Bitcoin news just dropped, highlighting yet another major milestone for the crypto market.
As of today (Thursday), U.S citizens will be able to invest part of their retirement savings into Bitcoin.
U.S President Donald Trump was reportedly slated to sign a new executive order that will pave the way for employed individuals to invest part of their 401K into Bitcoin.
This is the latest step towards Bitcoin mass adoption because it means BTC could become accessible to millions of people in the U.S.
This comes just three months after Coinbase Global was added into the S&P500. Moreover, this move will pave the way for billions worth of liquidity to flow into BTC.
Galaxy Digital CEO Mike Novogratz stated that the move will unlock heavy liquidity injection. He also described Bitcoin as a hedge against excessive money printing.
It is worth noting that the 401K liquidity flows into BTC could contribute to higher floor prices since they will mostly be long-term investments.
There’s no doubt that the U.S dollar’s dominance has been facing a bigger threat this year, especially with debt levels heating up to concerning levels.
Meanwhile, gold purchases have been pushing the precious metal’s valuation to new highs. Interestingly, a gold revaluation might be on the table according to a recent report.
A gold revaluation means governments might readjust the value of the gold reserves that they hold.
The revaluation could aggressively raise the value of the gold that the U.S government holds and this could influence Bitcoin news.
Reports suggest that the U.S might use the gains from the revaluation to boost its Bitcoin reserves.
The report, which was published by the U.S Federal Reserve noted that the revaluation might pave the way for governments to raise revenue without raising taxes.
Note that the FED board of governors were in the process of discussing the approach. It was not yet confirmed whether the U.S would implement such measures.
Nevertheless, it also acknowledged that public debt was ballooning to concerning levels.
It was no secret that the FED was under a lot of pressure for keeping rates high. Most of that pressure came from President Trump who recently criticized Fed Chair Jerome Powell for failing to implement a rate cut.
Well, UK may have just turned up the heat courtesy of its latest rate cut. The Bank of England reportedly slashed interest rates from the previous 4.5% to 4.0% which was in line with expectations.
Recent reports revealed that the FED decided to keep rates higher for longer. However, rate cut expectations in September remained high.
According to Polymarket, the probability of rates remaining unchanged in September dropped from 63% on 1 August to 16% as of 7 August.
Meanwhile, the probability of a 25 BPS rate cut surged to 79% as of 7 August compared to 35% at the start of August.
A rate cut in September may boost investor confidence and trigger more liquidity injection into Bitcoin and other risk-on assets.
The combination of the latest Bitcoin news (new executive order for 401K and rate cut probabilities) yielded more upside for Bitcoin.
BTC price was up by over 1.3% in the last 24 hours, which allowed it to reclaim the $116,000 price level.
It had so far retraced by about 4% from its weekly low. Market fear and greed sentiment bordered greed territory but remained neutral after a 1-point gain in the last 24 hours.
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