Traders eagerly boost bets on two Bank of England rate hikes by year-end

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**Traders eagerly boost bets on two Bank of England rate hikes by year‑end**

*Increased rate hike expectations could strengthen the pound, impacting UK‑based crypto traders and creating volatility in risk assets. The post Traders boost Bank of England rate bets, favor two 25bps hikes by year‑end appeared first on Crypto Briefing.*

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### Introduction
Financial markets are pricing in a more aggressive stance from the Bank of England (BoE) as inflation pressures persist and wage growth shows signs of reacceleration. Recent surveys of money‑market dealers indicate a sharp rise in the probability of two 25‑basis‑point increases before the end of 2025, a shift that could reverberate through sterling, equities, and the nascent crypto sector.

### Key Developments
- **Market sentiment:** Bloomberg’s latest rate‑expectation tracker shows the implied chance of a December hike jumping from 35 % to 58 %, while the probability of a second hike in Q4 2025 climbed to 42 %.
- **Pound reaction:** GBP/USD slipped to 1.2650 on the news, then rebounded as traders priced in a stronger currency, reflecting the traditional inverse relationship between rate expectations and sterling strength.
- **Crypto exposure:** UK‑based crypto exchanges reported a 12 % uptick in trading volume for BTC/GBP pairs, as investors hedge against potential pound appreciation.
- **Risk‑asset ripple:** Equity indices such as the FTSE 100 showed modest intraday volatility, with growth‑oriented stocks underperforming relative to defensive sectors, a pattern often seen when monetary tightening looms.

### Industry Analysis
Analysts at Capital Economics note that the BoE’s shift toward tighter policy is driven by persistent services‑inflation and a tight labour market, which together threaten to keep headline CPI