Bitcoin

This move is part of a broader trend of governments using energy subsidies to ease cost-of-living pressures, which may temporarily support risk assets. However, it also signals that policymakers are willing to intervene in energy markets, potentially creating uncertainty for energy-intensive industries like crypto mining. The UK is not a major mining hub, so the effect is negligible.

The UK government announced it will cut VAT on domestic electricity to zero.

UK Cuts Domestic Electricity VAT to Zero – Crypto Miners Get No Break

UK's VAT Cut on Electricity Is a Wolf in Sheep's Clothing for Crypto Miners – Expect Tighter Energy Regulations Ahead

The hospitality industry is a bellwether for discretionary spending; its struggles amplify recession fears already priced into risk assets. A potential VAT cut would be a targeted fiscal measure, but its absence could accelerate business closures and job losses, further depressing economic sentiment. For crypto, this reinforces the macro headwind of a slowing UK economy, though direct correlation is weak.

Top UK chefs called for a 10% VAT cut for pubs and restaurants to ease mounting pressure on the hospitality industry.