The European Central Bank kept its three key interest rates unchanged at its July meeting, leaving the deposit facility rate at 2.25%, the main refinancing rate at 2.40%, and the marginal lending facility rate at 2.65%. A scheduled bond runoff of 51.753 billion euros in July transfers more debt to private buyers, competing with capital available for Bitcoin. Bitcoin traded around $64,000 on July 25 as financial conditions remained restrictive while euro-area banks tightened business and mortgage lending standards. The ECB’s combined APP and PEPP portfolios declined by 39.447 billion euros in June, with holdings falling to 2.121 trillion euros and 1.319 trillion euros respectively. The shrinking ECB balance sheet and tighter bank credit conditions are reducing global liquidity and increasing returns on safer assets, which indirectly pressures Bitcoin’s appeal relative to traditional investments.
Source: Read the original article
