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

The Bank of England’s planned unwinding of roughly £368 billion in quantitative easing marks an eight-year test for markets as liquidity support is withdrawn and interest rates remain influential. The shift could sustain pressure on risk assets, including Bitcoin, by tightening financial conditions and reducing excess liquidity. Bitcoin’s response will depend on whether institutional demand and its perceived hedge properties can offset the macro headwind from balance-sheet reduction and higher-for-longer rates.