Crypto lovers will be asking themselves if they can already hear money printers going BRRR in some of the world’s most significant economies– after the European Reserve Bank (ECB) chose to double down on its emergency situation bond-buying in the wake of the coronavirus pandemic.
Cryptocurrency supporters have actually been arguing that cash– already stopping working prior to the COVID-19 crisis, might not have what it requires to make it through. And for those anticipating that bitcoin (BTC) and altcoins will soon have their time in the sun, the ECB’s move will come as not a surprise.
Today, ECB president Christine Lagarde chaired a virtual conference where the bank chose to up bond purchases by EUR 600 billion (USD 680 billion).
Bloomberg reports that the “vast majority of economists” it surveyed last week anticipated the bank to increase its bond costs by a much lower figure: EUR 500 billion (USD 567 billion).
And the ECB did not stop there. The bank extended the bonds’ period by a minimum of the end of June 2021, with more extensions now appearing likely.
In an official declaration, the ECB also added that its bond-buying program is now set to hit the EUR 1,350 billion (USD 1,528 billion) mark, with interest rate levels the same.
The bank composed,
” We anticipate [interest rates] to remain at their present or lower levels up until we have actually seen the inflation outlook robustly assemble to a level adequately near, however below, 2% within our forecast horizon, and such merging has actually been regularly shown in underlying inflation characteristics.”
Bloomberg said that the move “reflects how Europe is finally coming together with vast spending plans to drag the economy out of its worst recession in living memory.”
Along with the ECB’s costs spree, member states are also preparing to get their money printers into gear: Germany last week revealed a new USD 147 billion costs package last week, while the EU is set for talks over setting up a joint recovery fund worth USD 850 billion.
Northman Trader creator Sven Henrich used some succinct analysis on Twitter:
If we do not print more whatever falls apart,
— Sven Henrich (@NorthmanTrader)
At pixel time (15: 16 UTC), BTC trades at USD 9,744 and is up by 1.5% in a day and by 3% in a week.
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