ECB cuts rates, crypto markets prepare for potential Bitcoin surge

Colin Wu, a crypto news reporter, notes that the European Central Bank (ECB) announced its first interest rate cut in five years, reducing rates by 25 basis points.

This decision comes amid projections of inflation of 2.5% in 2024, gradually decreasing to 1.9% by 2026. Furthermore, GDP growth forecasts predict that GDP will increase by 0.9% in 2024 and 1 .6% in 2026. The move, anticipated by money markets, marks the first cut since September 2019, when the deposit facility entered negative territory.

The unanimous decision to reduce fees was taken by all 20 national representatives, with ECB President Christine Lagarde emphasizing the data-driven nature of her approach. She emphasized that decisions would be made meeting by meeting.

Lagarde revealed that although there was unanimous agreement on the data-driven path forward, one member abstained from voting. However, she has not revealed her identity. The Governing Council reaffirmed its commitment to analyzing the inflation outlook, underlying inflation and the transmission of monetary policy.

Bitcoin may take advantage of the possibility of further rate cuts

Following the announcement, market expectations revolve around potential further rate cuts. Notably, economists predict two more cuts in the near future. This decision is in line with a broader global trend, as the Bank of Canada recently It became the first major central bank to cut interest rates this year, sparking speculation of a similar move by the ECB.

In addition to these macroeconomic conditions in the European Union, QCP Capital analysts suggest that today’s report on U.S. unemployment claims and the upcoming CPI release could potentially lead Bitcoin to new historic highs.

– Announcement –

QCP Capital further states that market dynamics could intensify if potential rate cuts are factored into the equation. The sentiment echoes recent actions by central banks around the world, underlining a collective effort to navigate economic uncertainty. This is notable as the ECB is expected to follow suit with a similar quarter-point rate cut.

Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.

-Announcement-

Fuente