ECB Reopens the Floodgates: Good News for Bitcoin

The European Central Bank (ECB) has decided to lower its key interest rate from 4.50% to 4.25%, a first in five years, despite a recent increase in annual inflation. This decision aims to revive the European economy by facilitating access to credit, although Christine Lagarde, President of the ECB, highlighted geopolitical and economic uncertainties that could affect inflation and energy prices. This rate cut is seen favorably for Bitcoin, providing a haven against fiat currency volatility. Additionally, the ECB will begin gradually selling the €1.85 trillion in debt accumulated during the pandemic starting July, a process that will take two decades.

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