France creates European borrowing rates crisis, inflation is on the rise, Bitcoin holding steady
Last Updated on 3 September 2025 by CryptoTips.eu
A lot of worrying economic stories appeared in the press yesterday, which is yet one more reason why investor sentiment is deteriorating. At the same time, Bitcoin is holding up quite well and remains around $110,000. Can it maintain that level, or will investors soon be rushing for the crypto exit as well?
Bayrou
The first problem child, where the government of Prime Minister Bayrou is on the verge of collapse after some 262 days at the helm of a center-right government. François Bayrou is doing better than his two predecessors Barnier and Attal though, as they both lasted less long. French long-term interest rates are rising rapidly, making it increasingly difficult for the government to continue funding its expenses.
🇫🇷 *FRENCH 30-YEAR YIELD RISES ABOVE 4.5% FOR FIRST TIME SINCE 2011 - BBG
— Christophe Barraud🛢🐳 (@C_Barraud) September 2, 2025
The situation is also deteriorating in the United Kingdom where long term borrowing rates for the government are at the highest level in 27 years. Are we heading for another interest rate crisis like the one in 2012-2013?
Another cause for concern is rising European inflation. While it’s still reasonable in Western Europe (around 2%), it has already skyrocketed in Eastern Europe. Will the ECB soon have to raise short-term interest rates again (just as the US Federal Reserve finally seems ready to lower its interest rate?).
Amid all this macroeconomic turmoil, Bitcoin is holding up relatively well. Although the largest digital currency dropped to $107,000 a few days ago (the lowest level in a month), its value has since climbed back to $110,000, demonstrating that there’s still plenty of buyers to be found in this market.
It will be exciting to see what happens. Next Monday, the French parliament will vote on Bayrou’s fate, and it looks like we could be on the verge of another round of interest rate crises in the EU.
