Eurozone Inflation Falls to 1.7 Percent – Moderate Boost Expected for Bitcoin

The inflation rate in the eurozone declined significantly in January 2026. According to Eurostat estimates, annual inflation fell from 2.0 percent in December to 1.7 percent ^[1].

Among the main components, services recorded the highest inflation rate at 3.2 percent, while energy prices showed a marked decline at minus 4.1 percent ^[1]. The eurozone unemployment rate improved in parallel to 6.2 percent.

The falling inflation figures could reinforce expectations of a continued interest rate pause by the European Central Bank, although market participants assign a 92 percent probability to ruling out a rate cut at tomorrow's meeting ^[1]. The main refinancing rate currently stands at 2.15 percent, with the deposit rate at 2.0 percent.

For Bitcoin and other cryptocurrencies, this development could provide moderate positive momentum, as a stable interest rate environment tends to favor risk assets ^[1]. However, US monetary policy remains the decisive factor for the crypto market, as liquidity and capital flows are primarily determined by the dollar zone and the Federal Reserve ^[1].