European Central Bank cuts interest rates - this is how Bitcoin reacts

After the first rate cut in June, the ECB is responding with further monetary policy easing. This is how Bitcoin and the crypto market react.

The European Central Bank wants the economy stimulate and cut interest rates. The ECB announced this today in a press release.

Overall, the central bank cut the deposit rate, which affects lending and savings rates, by 25 basis points to 3.5%.

Experts had already expected this adjustment. The research team at Landesbank Baden-Württemberg (LBBW) said, "Declining inflationary pressures give the ECB room to cut its interest rates further. But it should not go too fast, because the battle against high inflation is not yet won."

During the press conference today at 2:45 p.m. ECB President Christine Lagarde will further explain the bank's monetary policy.

Since September 2019, interest rates have risen from 0 to 4.5% in June 2023. A year later, the ECB cut interest rates again for the first time, according to data from Statista.

Experts expect a similar strategy from the U.S. central bank (the Fed), with a so-called "pivot" expected on Sept. 19.

Bitcoin is quoted at $58,100 at the time of publication, showing a slight increase of 2% compared to the previous day. The rest of the crypto market follows the lead currency's lead: Ethereum records a 1% gain, and Solana achieves nearly 3% growth over the past 24 hours.