Interest reduction in the ECB reduces the role of the EU in the global cryptoma market
- ECB interest rate reductions ensure the shift of global crypto activity to Asia.
- Bitcoin indicators and US politics dominate the new market mood.
The most recent interest rate of the European Central Bank ECB did not move the cryptoma markets. This is a sign of Europe’s decreasing influence in a market, the nun From the USA and Asia dominant becomes.
That also has to do the economyjust not with the EU. The relocation of capital and institutional focus away from Europe is becoming increasingly clearer in the entire crypto sector.
Europe’s decreasing influence on the mood at the cryptoma market
The ECB lowered the interest for the seventh time since June last year by 25 basis points and brought the deposit rate to 2.25 %. The cryptoma markets did not move, according to Coinmarketcap, the entire market capitalization only fell by 0.2 %.
According to the ECB Disinflationary forces and trade voltages were the reasons for this. ECB President Christine Lagarde mentioned the growing downward risks for growth and inflation expectations in the euro zone at the press conference.
Lagarde also discussed the debate about a reduction by 50 basis points and said that this was considered, but was unanimously opted for more careful 25 basis points due to the economic uncertainty.
She rejected the idea of evaluating politics based on the neutral interest rate, and given this as “meaningless” in view of the current economic shock. This differs significantly from the ECB under Mario Draghi, who always advocated preventive measures.
The reaction of the market, or the absence of such, reflects a wider trend. Even big political steps of the ECB no longer play a role for cryptocurrencies. The most recent volatility through US tariff was causedhad much greater effects.
Institutional focus shifts to the USA and Asia
The dwindling influence is not limited to the measures of the central banks. The institutional backbone of the cryptocurrency shifted to other regions. How CNF reportedTether, the largest stable coin, has because of the editions of the Micar Ordinance withdrawn from the EU market .
Although Tether has lost access to European users, his market share remains intact. Tether is now after El Salvador moved awayto be closer to the US and Latin American regulatory framework. The US markets are still the engine of crypto.
The latest Bitcoin increase after the Trump customs break showed how sensitive cryptocurrencies can react to. When the break occurred, the profits increased again, which proves that the United States had control over the crypto trends. The announcement of the Bank of England that inflation is lower than expected had as little influence on the market as the interest rate of the ECB.
The companies follow this example. Andreessen Horowitz (A16Z) has closed his London office this year to consolidate himself in the USA, and the risk capital shifts to the American markets. According to the price data, 9 of the 10 most important cryptocurrencies rose according to the US macron news, despite the European economic news. The trend shows where the dealers and companies believe that growth will take place.
Technical data show a US-led housese
As indicated in our previous discussion, the technical data confirm this geographical shift. Loud CNF the 90-day SMA from Bitcoin has just exceeded the 365-day SMA, a bullish signal. The Bitcoin course is $ 84,724.11, 1.69% higher on a daily basis and 3.85% higher on a weekly basis.
Other metrics also support this. The StableCoin Supply Ratio (SSR) is 14.3, a very high purchasing power in relation to the market capitalization of Bitcoin. The number of BTC on central stock exchanges is 2.43 million, the lowest status since 2018. This means that investors keep in the long term, which is often the case with great relaxation.
The US exchanges will again gain domination in the BTC transfer volume. The “US vs. offshore ratio” increases again after it has dropped from the highest stalls in January. This means that the cryptocapital focuses on the American infrastructure and continues to marginalize Europe in the global market.
Since the retailers expect further interest rate reductions of the ECB in the amount of 65 basis points by the end of the year, while expectations are minimal, the gap will increase. Despite the ECB’s intention to be flexible, as Lagarde said, the cryptom market listens elsewhere.
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