Bitcoin Soars Above $71,000, as Bank of Canada Cuts Interest Rates for the First Time in Four Years

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The Bank of Canada cut its benchmark interest rate by 25 basis points, the first cut in four years. The price of Bitcoin rose above $71,000, its highest since March, settling around $70,900. Lower interest rates are generally good for risky assets like Bitcoin, as they make borrowing money cheaper and increase the money supply. The Bank of Canada governor said confidence in returning inflation to their 2% target has increased. The US Federal Reserve is expected to keep rates steady in June but cut by September according to market forecasts.