Why #BTC may benefit from an ECB rate cut

The ECB is expected to cut rates by 0.25%, following seven consecutive months of easing inflation across the euro zone.

Bitcoin inflows could see a surge this week following a key monetary policy decision in the European Union.

The European Central Bank (ECB) is expected to reduce interest rates by 0.25% to 4.25% on June 6. The rate cut could increase investor appetite for risky assets like Bitcoin BTC€63,600, according to Jag Kooner, the head of derivatives at Bitfinex. Kooner told Cointelegraph:

“The European Central Bank is expected to cut interest rates next week to stimulate economic growth. “Lower rates typically weaken the euro and increase liquidity, which can boost risk assets, including Bitcoin.”

The rate cut expectations come during a period of slowing inflation in Europe. The Consumer Price Index (CPI) for May is expected to be 2.6%, which could mark the eighth consecutive month of inflation below 3%.

Bullish outlook: Bitcoin will follow stocks higher

The potential interest rate cut could boost traditional equity markets and add more bullish momentum to Bitcoin, according to James Wo, the founder and CEO of DFG.

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