ECB’s interest rates drop: Bitcoin climbs higher

Central Banks Inject Liquidity into the Economy

The value of Bitcoin (BTC) climbed higher as central banks made a move which analysts liken to a currency devaluation race.

The European central bank also made a move which is believed by many to skyrocket Bitcoin prices.

The move made by the European central bank by slashing its interest rate on deposits to -0.5% from a positive of 0.1% (by 10 BPS) could only accentuate the value proposition of Bitcoin.

The European Central bank also revealed that it would start a fresh round of quantitative easing by pumping 20 million Euros into the Bond market and other assets (not yet disclosed, but sure financial) every month to boost the economy.

Bearing in mind that the U.S. President, Donald Trump also made a call to the Federal Reserve for interest rates to be slashed to zero or less. A top-notch executive of the American monetary policy revealed the notion of achieving a negative interest rate in the U.S is no meantime.

The market pricing is already indicating that the September meeting of the FOMC(Federal Open Market Committee) may result in changes in interest rate been slashed by 100%. Futuristically, this rate cut is expected to continue into the year 2020.

Bitcoin Jumps Higher

The uniqueness of Bitcoin has separated it from the fiat economy, therefore all the moves been made by the central bank will work in its favor.

A top Bitcoin investor/analyst wrote that the ECB pumping 20 million Euros into bonds and other assets is going to increase money in the economy and it’s a perfect strategy for currency devaluation in the meanest time.

He likens the recent moves by the central banks as a currency devaluation race, in which scarce assets like Bitcoin will come to light. He believes that the more irrational the move is, the more Bitcoin will shine.

This also has been corroborated by several analysts that the more money central banks pump out, the higher Bitcoin prices will rise.