Alongside stocks, bitcoin rises as markets prepare for this week’s expected ECB rate cut.

Bitcoin’s price has increased in tandem with equity indexes as broader markets prepare for this week’s anticipated rate drop by the European Central Bank.

In early Monday trade, the price of bitcoin rose above $69,000.

has risen more than 2% in the last 24 hours, which has coincided with booming financial markets in early trade on Monday. As of 7:15 a.m. ET, the price of bitcoin had climbed by more than 2.25% in the previous day and was trading at $69,035 according to The Block’s Price Pages.

On Monday, the main equity indices in Europe and the UK saw gains. Early in the day, the FTSE 100 in London saw a 13.48-point gain to 8,288.86. Throughout the day, the regional Stoxx 600 index in Europe gained 0.44% to close at 520.44. Pre-market trading saw a 1.3% increase in the NYSE Composite and a 0.15% increase in New York S&P 500 futures.

The increase coincides with expectations that this week’s high interest rates will be lifted for borrowers in the eurozone. It is anticipated that the European Central Bank will cut its benchmark rates on Thursday in response to recent drops in inflation.

The probability of an ECB rate cut at this week’s monetary policy meeting is 93%, according to money markets. The rate on the ECB’s deposit facility, which banks use to deposit money overnight with the Eurosystem, is probably going to be lowered from the present record high of 4% to 3.75%.

More market liquidity for Bitcoin could be advantageous.

In an interview with The Block, Jag Kooner, Head of Derivatives at Bitfinex, said that there has traditionally been a mixed relationship between bitcoin and stocks.

Furthermore, according to Kooner, bitcoin is viewed as an inflation hedge. The digital asset may draw additional investment if the ECB rate decrease increases inflation expectations because it is seen as “digital gold.”

“Bitcoin might follow equities if it continues to be treated as a risk asset, benefiting from the same liquidity inflows,” said Kooner.

Impact of ECB rate decisions may be little.

Ruslan Lienkha, Chief of Markets at YouHodler, told The Block that he does not believe the ECB’s decision would have a major effect on the price of bitcoin. “Expectations of a rate cut in the EU are not reflected in bitcoin’s price movements mostly because the European crypto market is relatively small,” he said.

Lienkha continued, pointing out that while there may be some short-term divergence, in the medium to long run, bitcoin primarily correlates with U.S. equities markets.

“Therefore, a rate cut may stimulate the European equity market to grow, creating a positive sentiment in the U.S. market, and then indirectly supporting crypto prices in the near term,” Ruslan said.