Global Central Banks Hike Rates Amid Inflation Fight – Can Bitcoin Sustain $30K?

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On June 22, central banks across multiple countries—including the UK, Switzerland, Norway, and Turkey—announced interest rate hikes in a coordinated effort to combat persistent inflation. The most dramatic move came from Turkey, which raised its benchmark rate by a staggering 650 basis points, signaling a sharp policy reversal after years of unorthodox economics. Meanwhile, in financial markets, Bitcoin surged past $30,000, reigniting investor interest amid growing institutional momentum.

This article explores the implications of these global monetary shifts and analyzes whether Bitcoin’s rally has room to continue.

Major Central Banks Tighten Monetary Policy

Turkey’s Dramatic Rate Hike Signals Policy Shift

The Turkish Central Bank raised its policy rate by 650 basis points to 15%, marking its first rate increase since March 2021. This bold move is widely seen as a pivot toward orthodox economic policy after years of negative real interest rates under President Recep Tayyip Erdoğan.

For much of the past decade, Erdoğan maintained that high interest rates cause inflation—a stance contrary to mainstream economics. Between September 2021 and May 2023, Turkey slashed its benchmark rate from 19% to just 8.5%, triggering a collapse in the Turkish lira. Over the past three years, the lira has lost 67% of its value against the U.S. dollar.

With inflation peaking above 85% in 2022 and still hovering above 40% today, the new economic team appointed after Erdoğan’s re-election is taking decisive action. Analysts interpret this aggressive hike as a strong signal that Turkey is finally prioritizing macroeconomic stability.

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While Erdoğan has stated he still believes in low-rate policies, he has empowered his new finance minister and central bank governor to implement tighter controls. Most economists expect further rate hikes in the coming months if inflation does not begin to moderate.

UK Raises Rates to 5% in Thirteenth Consecutive Move

The Bank of England increased its key interest rate by 50 basis points to 5%, the highest level since 2008. This marks the 13th consecutive rate hike since December 2021, reflecting ongoing concerns about inflation.

UK consumer prices rose 8.7% year-on-year in May, unchanged from April and above the Bank’s 2% target. Despite aggressive tightening, core inflation pressures remain sticky, particularly in services and wage growth.

Policymakers face a difficult balancing act: curbing inflation without triggering a deeper recession. While some officials support a pause, others argue for further hikes given the resilience of domestic demand.

Switzerland and Norway Follow Suit

The Swiss National Bank raised its policy rate by 25 basis points to 1.75%, the fifth increase since it began normalizing policy in 2022. Although Swiss inflation slowed to 2.2% in May, it remains above the central bank’s comfort zone.

Officials emphasized that disinflation should not be mistaken for price stability. They warned that inflationary pressures could re-emerge and left the door open for future hikes to ensure medium-term stability.

Norway also tightened policy, lifting its benchmark rate by 50 basis points to 3.75%. Norway’s CPI jumped 6.7% year-on-year in May, exceeding expectations and prompting concern over wage growth and currency depreciation.

The Norges Bank noted that without intervention, inflation could worsen due to rising labor costs and a weakening krone. It signaled that another 50 basis point hike in August is possible if price pressures persist.

Bitcoin Breaks $30,000 – What’s Driving the Rally?

After months of consolidation below $27,000, **Bitcoin surged nearly 8% on June 21**, briefly surpassing **$30,000**—a psychological milestone not seen since April 2023. The rally coincided with growing institutional interest in spot Bitcoin ETFs.

Institutional Demand Fuels Optimism

On June 15, BlackRock, the world’s largest asset manager, filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF. If approved, Coinbase would serve as custodian, lending credibility to the application.

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, declared:

“The future of crypto is more BlackRock than Binance.”

Michael Novogratz of Galaxy Digital echoed the sentiment, calling BlackRock’s entry a “game-changer” for Bitcoin adoption.

While the SEC has rejected all previous spot Bitcoin ETF applications, it has approved several Bitcoin futures ETFs, suggesting a cautious but evolving stance.

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A Wave of New ETF Applications

Following BlackRock’s lead, multiple asset managers have resubmitted or filed new applications:

These filings suggest a growing consensus: Bitcoin is maturing as an institutional-grade asset.

FAQ: Your Questions Answered

Why did Turkey raise rates by so much?

Turkey hiked rates by 650 basis points to combat inflation above 40%. After years of unorthodox policy under President Erdoğan, the new economic team is adopting conventional tools like rate hikes to stabilize the lira and restore investor confidence.

Has the Fed paused rate hikes?

As of mid-2025, the U.S. Federal Reserve has paused its hiking cycle to assess cumulative tightening effects. However, central banks in Europe and emerging markets continue adjusting rates based on local inflation dynamics.

Is Bitcoin’s $30,000 breakout sustainable?

The breakout reflects renewed institutional interest and improving macro sentiment. With multiple spot ETF applications under review and inflation showing signs of cooling globally, Bitcoin could maintain upward momentum—if regulatory clarity improves.

What are basis points?

One basis point equals 0.01%. So, a 650 basis point hike means a 6.5 percentage point increase (e.g., from 8.5% to 15%).

Could more countries hike rates soon?

Yes. Several central banks—including those in Canada, Sweden, and Poland—are evaluating further tightening due to persistent core inflation, especially in services and labor markets.

How do interest rates affect Bitcoin?

Higher rates typically strengthen the U.S. dollar and reduce risk appetite, pressuring assets like Bitcoin. However, when rate hikes peak and inflation cools, markets often anticipate future easing—boosting demand for alternative stores of value like crypto.

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Conclusion: A Turning Point for Markets?

The synchronized rate actions on June 22 reflect a global commitment to restoring price stability—even at the cost of economic growth. For Turkey, this marks a potential turning point after years of financial turmoil.

At the same time, Bitcoin’s rebound above $30,000 underscores shifting investor sentiment. With giants like BlackRock entering the space, crypto is no longer a fringe asset—it's becoming part of mainstream finance.

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While regulatory hurdles remain—especially around spot ETF approvals—the trajectory is clear: digital assets are gaining legitimacy. As macro conditions evolve and institutions deepen their involvement, both traditional and crypto markets are entering a new phase of maturity.

Investors should watch central bank signals closely while assessing how regulatory developments could unlock the next wave of crypto adoption.