Pierre Wunsch, governor of the National Bank of Belgium and ECB Governing Council member, told reporters on June 19 that the rationale for another rate hike is fading. He said the central bank could turn to cuts if inflation dynamics shift, though a July increase still looms. His comments follow the ECB’s June 11 decision to lift the deposit facility rate to 2.25%, its first rise since 2023.

Services inflation sat at 3.5% in May, while ECB forecasts peg overall inflation near 3% by 2026. Wunsch stressed a data‑driven stance, pointing to Iran‑related geopolitical tension as a driver of energy price swings and warning that second‑round effects could embed higher wages into the cost base. A cooling services reading would tilt the balance toward a pause.

Crypto assets have historically slipped when ECB long‑term rates rise; the June hike added headwinds to Bitcoin, Ethereum and even stablecoin Tether as liquidity tightened. Investors now watch July data for any sign that services inflation eases or energy markets settle, which could trigger a rate pause and ease pressure on digital‑currency valuations. The next ECB decision will directly shape crypto market liquidity.