Summary
TLDR: The Swiss National Bank cut its benchmark interest rate by 0.25%, diverging from other central banks. This could be positive for crypto markets, which historically follow global macroeconomic policies. The move was unexpected, driving down Swiss government bond yields and the Swiss Franc’s value. The U.S. Federal Reserve and European Central Bank are expected to lower rates later this year. Bitcoin’s price has fluctuated in response to central bank rate changes in the past, but other factors may now be more important.
Key Points
1. The Swiss National Bank (SNB) made a surprising twenty-five basis point cut to its benchmark interest rate, deviating from the trend of other central banks maintaining or raising rates.
2. The move by the SNB could potentially impact crypto markets, as historically they have been influenced by global macroeconomic policies.
3. Economists initially expected the SNB to keep rates elevated, but the unexpected rate cut led to a decrease in Swiss government bond yields and the value of the Swiss Franc against major currencies like the Euro and U.S. dollar.