The European Central Bank (ECB) has cut its benchmark interest rates to 3.5%, spurred by slowed inflation in the Eurozone and sluggish economic growth.
Following the ECB's announcement, the cryptocurrency market soared, with Bitcoin surpassing $58,000, demonstrating a significant alignment between crypto and global monetary policies.
Cryptocurrencies, particularly Bitcoin, are increasingly influenced by central bank decisions, as they correlate closely with risk assets like tech stocks, reflecting market liquidity and investor sentiment.
Despite a positive short-term reaction, the cryptocurrency market remains vulnerable to global economic fluctuations, underscoring the speculative nature of these assets and their ties to traditional finance.
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