Sunday, July 21, 2024

Bitcoin Up 2% as ECB Signals End to Rate Hikes.

The European Central Bank (ECB) signalled on Thursday that its most recent increase in interest rates may be the final one, which led to a 2% increase in the price of bitcoin (BTC). In a recent announcement, the European Central Bank (ECB) stated that its key interest rates had reached levels that would significantly contribute to the timely return of inflation to the target level. The bank raised three significant interest rates by 0.25%, bringing the principal deposit facility rate up to 4% in June 2022 from the previous level of -0.5%.

The financial markets have priced in a probability of 63% that another rate hike would occur at the meeting in September, despite the fact that analysts have already expressed scepticism regarding this possibility. Despite this, the current rate is still lower than what was predicted for inflation. As a result of a rise in projected energy prices, the European Central Bank (ECB) now anticipates that inflation will average 5.6% in 2023 and 3.2% in 2024. This is an increase from its previous predictions.

In spite of the fact that there are some indicators that inflationary pressures are beginning to ease, the European Central Bank emphasised that underlying price pressures continue to exert a significant amount of influence. The tightening of financial conditions is leading to a reduction in demand, which is essential for achieving the desired level of inflation. The bank projects that the expansion of the economy in the eurozone will proceed at a much more glacial pace in the years 2023 and 2024, with growth rates of 0.7% and 1.0%, respectively.

Investments in high-risk assets, such as equities and cryptocurrencies, have been impacted as a result of an increase in interest rates implemented by central banks such as the European Central Bank and the Federal Reserve. Following the launch of the Bank Term Funding Programme by the Federal Reserve in March 2023, the price of bitcoin topped $30,000 for a brief period of time.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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