Bitcoin faces an eight-year rates test as the BOE unwinds £368 billion

According to CryptoSlate, the Bank of England (BOE) has committed to removing £368 billion of gilts held for monetary policy purposes by September 2034. Reported by CryptoSlate, the Monetary Policy Committee approved a plan combining £20 billion in annual active sales with bond maturities, resulting in an average runoff of £46 billion per year.

As noted by CryptoSlate, six members kept the Bank Rate at 3.75%, while three preferred an increase to 4%, though all nine backed the gilt unwind. APF auctions will pause while the Bank reviews a potential arrangement involving HM Treasury and the Debt Management Office, with operational details expected by April 2027. Following the announcement, 10-year and 30-year gilt yields fell by early Thursday afternoon.

CryptoSlate reported that the BOE estimates quantitative tightening accounted for 20 to 30 basis points of a roughly 200-basis-point rise in long-term gilt term premia since 2022. While Bitcoin traded near $78,000, snapshots could not isolate market reactions to the Thursday announcement. The BOE decision establishes a long-term test regarding whether central bank withdrawal impacts global risk appetite and Bitcoin.