"Investors must be sad again, yes, the price of BTC has only gone up a little, not very much."
After the European Central Bank (ECB) announced its decision to raise the three main ECB interest rates by 25 basis points, the price of the mother of all cryptocurrencies Bitcoin (BTC) finally managed to break through $25,700 again.
It is reported that interest rates on main refinancing operations, marginal lending facilities and deposit facilities will be increased at 4.00%, 4.24% and 3.50% respectively.
The decision has caused the entire crypto market to recover slightly after experiencing a drastic decline yesterday following the Federal Reserve (Fed) being found to want to raise interest rates at the end of 2023.
Next, the ECB also reasoned that the increase in interest rates was aimed at combating its country's inflation which may remain high in the long term even though it has actually decreased.
In addition to the BTC price rising in response to the ECB interest rate hike, the crypto market previously during the May 2023 meeting also saw a positive reaction when the ECB took the same decision.
According to the Governing Council of the ECB, they predict that the inflation rate will decrease in the next two years, therefore the ECB may take a little aggressive action to reach its target of lowering inflation at 2% in the medium term.
As of this writing, BTC price has surged 1.86% to $25,505 in the past 24 hours with a market cap of $494 billion but is still down 3.93% over the past week.
