Traders bet on the Federal Reserve's loose policy, expecting the European Central Bank to cut interest rates to 2.65%

According to CoinDesk, the European Central Bank (ECB) is expected to cut interest rates to 2.65% on Thursday, continuing its loose policy from a high of 4.5%, despite the volatile European bond market. The market has re priced the expectation of at least three interest rate cuts by the Federal Reserve in 2025, while Germany and China have also taken fiscal easing measures. This may further drive global liquidity improvement and provide positive signals for risk assets such as Bitcoin. However, inflation in the euro area is still higher than the central bank's target of 2%, and the yield of German 10-year treasury bond bonds rose to 2.8% (the highest since 2011), which may cause the market to worry about the risk of the bond market.