The European Central Bank's latest assessment reinforces a key expectation: inflation is on track to settle at the 2% target level over the medium term. This reconfirmation matters more than it sounds. For traders and investors monitoring macro cycles, stable inflation expectations typically translate into more predictable policy paths and less volatility across asset classes. When central banks telegraph confidence in price stability, it shifts how capital flows into risk assets—including crypto. Markets often price in these signals ahead of time, so understanding where major institutions like the ECB stand on inflation dynamics remains crucial for positioning.