The European Central Bank (ECB) is expected to cut interest rates on Thursday to 2.65%, continuing its easing from a 4.5% peak amid increased volatility in bond markets.
The expected easing comes as markets reprice at least three Fed rate cuts for 2025 and Germany and China take the fiscal easing route to shore up their respective economies.
In other words, the ECB’s impending easing could only add to the ongoing global liquidity easing, offering bullish cues to risk assets, including cryptocurrencies.
“Overall, liquidity conditions are supportive and rising, to keep risk and crypto pushing higher, despite this recent correction on growth concerns,” founders of the newsletter service LondonCryptoclub said in Thursday’s edition.
Volatile bond markets
The European Union’s headline inflation is still not at the central bank’s target of 2%, which raises concerns about the impending rate cut and its impact on the European bond…
