The news could prompt investors to move their wealth to alternative stores of value. At the same time, the Bitcoin hashrate has risen, prompting one leading expert to say the cryptocurrency is set for another bull-run, to highs of $77,000. On Friday senior Bank of England policymaker Andy Haldane admitted that borrowing costs would need to rise soon to tame the coming inflationary threat.
This was a warning that the low inflation era of the past few decades may be coming to an end.
The Bank of England is considering increasing the deposit rate for regular savers, whose first instinct is to save in their own currencies.
This may in the short-term bolster the pound, but those wishing to avoid an inevitable rise in inflation may look for alternative stores of value, such as precious metals or bitcoin.
One cryptocurrency expert has predicted a bullish u-turn for bitcoin over the next 30 to 60 days.
The reason for this is the increase in the bitcoin hashrate, which is the speed at which bitcoin miners are able to perform mining calculations per second.
Mr Keiser has claimed on numerous occasions that the price of bitcoin follows the hash rate.
Speaking to Express.co.uk Mr Kesier said: “Price follows hashrate.
“Hash is a leading indicator.
“Based on the current number, $77,000 (short-term) is a lock.”
In his speech on Friday Mr Haldane said: “Inflation is the tiger whose tail central banks control.
“This tiger has been stirred by the extraordinary events and policy actions of the past 12 months.
“It is possible that, as vaccinations are rolled out and some degree of normality returns, inflation will return to a stable state of rest.
“Indeed, if risks from the virus or elsewhere prove more persistent than expected, disinflationary forces could return.
“But for me, there is a tangible risk inflation proves more difficult to tame, requiring monetary policymakers to act more assertively than is currently priced into financial markets.
“People are right to caution about the risks of central banks acting too conservatively by tightening policy prematurely.
“But for me, the greater risk at present is of central bank complacency allowing the inflationary big cat out of the bag.”