ECB interest rate cut is good news for Bitcoin although US jobs report dampens crypto spirits

After the Canadian Central Bank, Christine Lagarde’s ECB also decided this week to lower interest rates (from 4.50% to 4.25%). Even though Ms. Lagarde remained very vague about any future rate cuts, this was good news for Bitcoin. After all, these first two central banks put pressure on Jerome Powell at the Federal Reserve to ultimately do the same.

Those hopes were dashed last night after a better-than-expected jobs report showed that the American economy is still growing very fast.

WHO THE FUCK IS SELLING BITCOIN ? pic.twitter.com/Fh306Xoqvm

— Ash Crypto (@Ashcryptoreal) June 7, 2024

Bitcoin, which traded above $70k for almost a whole week, briefly touched $72k on Friday. Analysts thought it was heading for the mythical $74k ATH we noted in March of this year, but another stellar US jobs report knocked down tech and crypto. At the time of writing, Bitcoin is trading for $69,400.

JUST IN: Another big jobs report. The US economy added 272,000 jobs in May, blowing past expectations of ~190k. People keep getting jobs, esp. in healthcare., gov’t and hospitality.

*Unemployment rate: 4% —> This is the first time at 4% or above since Jan. 2022

Wage gains:… pic.twitter.com/s2Io2sGWit

— Heather Long (@byHeatherLong) June 7, 2024

Tech and crypto

Ms Lagarde from the ECB indicated during her press moment that European inflation could still rise, but that we are definitely on the right track. She is putting pressure on her American colleague Powell to do the same. If the Federal Reserve were to also indicate that it would lower interest rates, traditional investment funds could give their approval for investments in riskier investments, such as tech shares and crypto, which would boost Bitcoin.

BREAKING! The #ECB lowers interest rates for the first time since 2019. pic.twitter.com/42chrvXnL5

— jeroen blokland (@jsblokland) June 6, 2024

With 2.5% growth over the past week, Bitcoin’s climb may not seem remarkable, but considering the largest digital coin has struggled to trade above $70k for days in a row in recent months, it was a good week.

A double top, which some analysts were considering in the past weeks, now seems out of the question in my opinion. I do see a jump to $80k happening in the coming weeks, if the economic news from Europe and the United States remains investable. The jobs report effect should only be temporary, just like it was last time round.

Top 10

Last week’s winners were mainly Notcoin (Toncoin’s in-app coin) while in the top 10 of CoinMarketCap we noticed the growth of Toncoin and BNB (Binance Coin).