The Bank of England is considering pulling the plug on its quantitative tightening program, according to a report from the Financial Times. A decision to end the active sale of government bonds could ripple through global markets and, if history is any guide, give a tailwind to cryptocurrencies.
What the FT report says
The Financial Times reported Tuesday that BoE officials are debating whether to halt QT, which has been shrinking the central bank's balance sheet by about £100 billion a year. The move would mark a significant policy shift, potentially freeing up liquidity in the UK bond market and beyond. No official announcement has been made, and the central bank declined to comment on the report.
Crypto markets have often moved in sympathy with global liquidity conditions. A pause in QT by a major central bank could signal a broader easing of monetary policy, which historically has boosted demand for risk assets like bitcoin. The report comes as digital asset markets have been trading in a narrow range, with many traders waiting for a catalyst. A shift in the BoE's stance could be that spark — especially if it encourages other central banks to follow suit.
The BoE's next policy meeting is scheduled for September. No decision has been made, and the central bank has not commented publicly on the FT report. For now, crypto traders are watching UK gilt yields and the pound for early signals of a policy pivot. If the BoE does pull back, it won't be the only central bank reconsidering tight policy — but it would be the first to publicly signal a retreat.
