Bitcoin BTC
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‘The price rose on Thursday after the European Central Bank (ECB) voted to keep interest rates unchanged for the fifth consecutive meeting.
The largest digital asset by market cap rose about 1.5% over the past 24 hours and was trading for $69,607 as of 11:16 a.m. ET, according to The Block’s price page.
Although bitcoin typically closely tracks risky assets like major stock indexes, the cryptocurrency’s upward trajectory occurred as global markets gradually declined. The Dow Jones Industrial Average fell for a fourth straight day, the S&P 500 fell 1% and the Nasdaq Composite fell 0.1%. In Europe, the regional Stoxx 600 index fell 0.7% and London’s FTSE fell 0.67%.
Bitcoin rose on Thursday despite a decline in global markets. Image: The block.
The ECB keeps its rates stable
The euro zone key interest rate remained unchanged at 4%, the main refinancing rate at 4.5% and the marginal lending facility at 4.75%.
Today’s decision means that interest rates in the eurozone will remain at their highest level in more than two decades.
THE The ECB declared it would only be appropriate to reduce the current level of monetary policy restrictions if the central bank receives further evidence that inflation is converging towards the target in a sustainable manner.
Possibility of ECB rate cut in June
Konstantin Veit, portfolio manager at PIMCO, suggested that if available data, particularly on wages and profits, aligns with the scenario outlined in the March projections, the ECB would likely implement rate cuts in June .
In an email to The Block, Veit predicts that once the ECB begins cutting rates, it will do so cautiously, opting for conventional steps of 25 basis points.
The analyst observed that market expectations have adjusted to reflect a significant reduction in anticipated rate cuts and noted that market risks now lean toward fewer cuts. “Risks are likely towards lower cuts, mainly due to persistent inflation in services, a resilient labor market, loose financial conditions and ECB risk management considerations,” Veit said.
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