The influence of Europe on the crypto market is fading.

The European Central Bank (ECB) continues to cut interest rates by another 25 basis points yesterday, but the crypto market hardly reacted. This shows that the influence of the European market is diminishing on the crypto sector, especially when compared to America.

Meanwhile, the crypto community is waiting for America to lower interest rates, and even false rumors about tariffs have caused the market to soar. This shows that macroeconomic policies still play an important role, but clearly Europe is gradually losing its influence.

ECB cutting down the whales interest rates, crypto remains indifferent

The fear of a global recession is engulfing the crypto market, and legal factors play a key role. American investors are longing for a cutting down the whales with the hope of creating a new wave of price increases.

However, so far there has been no action from the Federal Reserve of America (Fed). Meanwhile, the ECB has just had its sixth consecutive interest rate cut, but the crypto market has hardly reacted.

"The outlook for growth has worsened due to increasing trade tensions. Escalating instability is likely to undermine the confidence of households and businesses, while negative reactions and volatility from the market in response to trade tensions may lead to tighter financial conditions," the ECB said in a public statement.

According to price data, the total market capitalization of crypto fell by 0.2% since the ECB announced the cutting down the whales of interest rates. Among the 10 largest digital assets, all recorded an increase today, except for ETH, XRP, DOGE.

Does this mean that macroeconomic factors are gradually losing their influence over the crypto market? That assessment is clearly inaccurate. Just under two weeks ago, the crypto market experienced a strong surge after false rumors emerged that Trump would temporarily suspend the tax.

When the postponement actually took place, the rally came back again. That shows that the impact of macro factors is still very strong in the market today. The problem is that the ECB and Europe are losing their influential roles.

The European Union is not the only economic bloc weakening in this space. Yesterday, the UK government announced lower than expected inflation, opening up the possibility of cutting down the whales once again.

This only has a very small impact on the crypto market. Macroeconomic concerns still affect the market, but the strongest link currently lies in America and Asia.

A clear sign of this change had appeared months ago when the ECB began cutting down the whales. Tether was forced to withdraw from the European Union due to MiCA regulations, but their business operations were hardly affected.

USDT remains the largest stablecoin in the world, even after withdrawing from the entire European market. In fact, since that time, this company has been even more proactive in integrating with regulations in America.

Meanwhile, many large crypto enterprises are shifting their focus to the America and Asia markets while withdrawing from Europe. Earlier this year, the investment fund a16z closed its office in London to concentrate resources on the America market.

Tether has also relocated its headquarters to El Salvador, bringing them closer to America and making it easier to access the Latin American market. This growth area is now considered to have much more potential than trying to make a comeback in Europe.

The ECB's cutting down the whales has hardly had any significant impact on the crypto market, but that does not mean that this industry will completely ignore an entire continent. However, in the near future, activity in America will become increasingly less important for the largest crypto companies.

This reflects a broader trend, as international capital is gradually withdrawing from Europe to shift towards other regions. It is completely understandable that the crypto industry is also following this trend.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions

Dinh Dinh