Bitcoin is struggling despite a rebound in European stocks as the BoE signals a summer rate cut.
With the Bank of England keeping interest rates steady and hinting at a possible rate cut in the summer, Bitcoin prices are struggling to stay above $61,000 despite a rebound in European stock indexes.
mainly European and UK stock indices were in the green on Thursday. London’s FTSE 100 index rose 22.19 points to 8,393.39 in intraday trading, hitting a record high. The Stoxx 600 index in Europe showed gains on the day, rising 0.15%. 516.54.
On Thursday, the BoE announced it would keep interest rates unchanged at 5.25% for a sixth consecutive session and said it would continue its “wait-and-see” approach until the necessary conditions for a rate cut are met.
But central bank governor Andrew Bailey welcomed the “hopeful news” on inflation and hinted that interest rates could be cut as early as next month if inflation falls as expected. “We have received encouraging news on inflation and believe inflation will be close to our 2% target in the coming months. We need to see more evidence that inflation will remain low before we cut interest rates. “I’m optimistic,” Bailey said. “Things are moving in the right direction.”
However, Interactive Investor analyst Myron Jobson emphasized that even if the BoE cuts interest rates in the summer, the long-term interest rate macro environment will not suddenly disappear. “Interest rates could remain higher over the next decade than they were in the decade following the 2008 financial crisis,” Jobson said in an email to The Block.
Bitcoin price fell more than 1%. In the last 24 hours it has changed hands for $61,411 at 9:08 AM ET. Block’s pricing page.
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