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Bitcoin Price Prediction as ECB and BoJ Rate Decisions Loom After Warsh’s Neutral Tone

By Muthoni Mary

Bitcoin (BTC) price has dropped below $80,000 despite the Federal Reserve leaving interest rates unchanged at between 3.75% and 4%. The reason for this drop could be because of the looming monetary policy decisions by the European Central Bank (ECB) and the Bank of Japan (BoJ). The two central banks are expected to…

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Bitcoin

The first and largest cryptocurrency, created in 2009, with a fixed maximum supply and no central issuer.

Its price swings and adoption by funds and companies make it a bellwether for the whole crypto market.

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Central bank

The public institution that manages a country's currency, money supply and benchmark interest rate, such as the Federal Reserve or the Reserve Bank of India.

Its decisions on rates and money supply move loan costs, currencies and markets for everyone in the economy.

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Federal Reserve

The central bank of the United States, which sets US interest rates and supervises banks.

Because the dollar is used worldwide, its rate decisions affect borrowing costs and markets in many other countries.

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Interest rate

The price of borrowing money, expressed as a percentage of the amount borrowed. A central bank sets a benchmark rate that other rates follow.

It decides how much people pay on loans and mortgages and how much savers earn, and it is the main tool for fighting inflation.

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