Interest rates are falling, Bitcoin is booming: What awaits us in the crypto market?

Interest rates are falling, Bitcoin is booming: What awaits us in the crypto market?

The Bitcoin price has stabilized over the last week and has increased by around 1%, currently standing at $105,000. After coming under short-term pressure, Bitcoin is now back in its established sideways range. A breakout that was initially interpreted as bearish turned out to be a fake-out, indicating bullish tendencies, as shown by the histogram of the MACD indicator. This is what the experts report Cointelegraph.

In a broader context, the recent interest rate cuts by the European Central Bank (ECB) are of great importance. On June 5, 2025, the ECB cut the three key interest rates by 25 basis points each. As of June 11, the main interest rate, the deposit facility, will be at 2.00%, while the main and marginal lending rates have been reduced to 2.15% and 2.40%, respectively. This decision comes against the background of the lower inflation forecasts and the assessment of the economic situation in the Eurozone. Average overall inflation of 2% is forecast for 2025, which is expected to decline to 1.6% by 2026. The main causes of this downward trend are falling energy prices and a stronger euro.

Influence of M2 money supply on Bitcoin

The current monetary easing could have a positive impact on risky assets like Bitcoin. Analyst MissCrypto interprets the ECB decision as a signal of an improved market environment. Bitcoin enthusiasts see the correlation between the global money supply M2 and the Bitcoin price as a promising development dynamic. Loud The investment The data points to an impressive 0.94 correlation between M2 money supply and Bitcoin price, meaning that increasing money supply is generally considered positive for Bitcoin.

The measure of the money supply M2 includes cash holdings and short-term deposits of households and companies in banks. An expansion in M2 is considered an indicator of inflation and economic activity, and recent analysis shows that Bitcoin is sensitive to changes in global liquidity. However, it should be noted that the future development of the money supply remains uncertain, which could influence market participants in their decision-making.

Market dynamics and geopolitical uncertainties

In addition to monetary policy decisions, geopolitical tensions significantly influence market conditions. In the US, the unemployment rate rose to 4.1%, against expectations of 4%, and job growth fell short of forecasts. These factors, together with declining consumer confidence due to tariff policy, create uncertainty. Analyst Crypto Uncle gets to the heart of the complex relationship between these factors and the Bitcoin market by pointing out the potential correlation between M2 and Bitcoin performance.

The ECB emphasizes the data dependence of its decisions and the need to react flexibly to economic changes. The increase in real incomes, the stable labor market and increased government spending are also expected to have a positive impact on the economic recovery.