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Bitcoin Flat at $19K as ECB Raises Interest Rates by 75 Basis Points

Summary:
In an attempt to fight the galloping inflation, the European Central Bank, similar to its counterparty overseas, raised the key interest rates by 75 basis points. Unlike the Fed’s interest rate hikes, though, this one has had no real impact on BTC’s price, at least for now. With the skyrocketing inflation across the Old Continent, the ECB was a little slow to react at first and failed to follow the Fed’s example for a while. However, the central banking authority changed its tune earlier this year by raising the interest rates by 50 basis points. Earlier today, the ECB went a step further by increasing the key interest rates by 75 basis points – the largest percentage in the bank’s history. Moreover, the organization vowed to continue doing so, arguing that this is the way

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In an attempt to fight the galloping inflation, the European Central Bank, similar to its counterparty overseas, raised the key interest rates by 75 basis points.

Unlike the Fed’s interest rate hikes, though, this one has had no real impact on BTC’s price, at least for now.

  • With the skyrocketing inflation across the Old Continent, the ECB was a little slow to react at first and failed to follow the Fed’s example for a while.
  • However, the central banking authority changed its tune earlier this year by raising the interest rates by 50 basis points.
  • Earlier today, the ECB went a step further by increasing the key interest rates by 75 basis points – the largest percentage in the bank’s history.
  • Moreover, the organization vowed to continue doing so, arguing that this is the way to fight inflation.

“Price pressures have continued to strengthen and broaden across the economy, and inflation may rise further in the near term,” – reads an ECB statement.

  • It’s worth noting, though, that the news had little-to-no effect on the cryptocurrency market. Bitcoin remained still – trading at just over $19,000, while ETH is still north of $1,600.
  • When the US Federal Reserve increases the interest rates, the crypto market reacts immediately with intense volatility, but this doesn’t seem to be the case with the ECB, at least for now.

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