#Write2earn #Bitcoin Surges Amidst Central Bank Rate Cut Expectations #BTConFire $BTC #bitcoinrallies

The overall percentage of global central banks opting for rate cuts is on the rise, signaling a positive trend for assets prone to risk, such as cryptocurrencies.

Bitcoin (BTC) experienced its most significant single-day surge in almost two months on Wednesday. This surge came as weak economic data from the United States increased the likelihood of the Federal Reserve (Fed) following its counterparts in other developed nations by implementing monetary policy easing through rate cuts during the summer.

According to data from TradingView , the leading cryptocurrency surged by over 7.5% to reach $66,250, marking its largest percentage increase since March 20. Like many other risky assets, BTC reacts strongly to anticipated shifts in the monetary policy strategies of major central banks, rallying when there’s an expectation of a decrease in the cost of borrowing traditional currencies.

Recent data from the U.S. Labor Department revealed that the consumer price index (CPI) rose less than expected in April, indicating a renewed downward trend in the cost of living in the world’s largest economy. Both headline and core CPI saw modest increases, with retail sales growth also stalling in April.

Consequently, expectations for rate cuts have significantly strengthened. Fed funds futures suggest that traders anticipate a 25 basis point rate cut by the Fed in September, aligning with the upcoming summer season. Additionally, other major central banks like the Bank of England (BOE) and the European Central Bank (ECB) are also expected to implement rate cuts in June. Some central banks, such as the Swiss National Bank (SNB) and Sweden’s Riksbank, have already reduced their benchmark borrowing rates.

This global shift towards monetary or liquidity easing is seen as a positive indicator for risky assets, including cryptocurrencies, as highlighted by data from MacroMicro.