Bitcoin traded around $64,000 on July 25 after the European Central Bank left its key interest rates unchanged and continued to shrink its bond portfolios, tightening credit conditions in the euro area.

The ECB kept the deposit facility rate at 2.25%, the main refinancing rate at 2.40% and the marginal lending facility rate at 2.65% on July 23. Its asset purchase programmes, the APP and the PEPP, fell by about €39.4 billion in June and another €31.1 billion by mid‑July as maturing securities were not reinvested.

Higher yields on traditional assets increase the return required for risk‑bearing investments such as Bitcoin, while tighter bank lending limits the capacity of intermediaries to provide liquidity. Spot Bitcoin ETFs, which connect Bitcoin directly to regulated investors, have also felt pressure as investors reallocate capital toward lower‑volatility assets.

The ECB said financial conditions have tightened slightly since its June meeting, and its next move will depend on incoming inflation data. Whether the continued restrictive environment will curb Bitcoin demand remains to be seen.