The European Union (EU) is taking a page out of America’s book. The collection of nations has agreed to a stimulus program that will potentially pump nearly $1 trillion back into the economy. The announcement was met with another bitcoin price rally. The currency is up roughly $200 more at the time of writing.
Another Stimulus, Another Rise for BTC
Bitcoin has experienced some solid surges since the introduction of the coronavirus. While at first, things looked glum and negative (the currency fell as low as $3,800 at one time), the currency ultimately began traveling north once people began to see bitcoin in an entirely new light. Rather than just something that was purely speculative, bitcoin was viewed as a financial tool that could potentially diversify one’s portfolio and hedge one’s wealth against inflation or other economic problems.
Many figures – such as Elon Musk of Tesla and SpaceX fame – decried the stimulus efforts of the United States, claiming that it was nearly impossible to print money out of thin air the way the government had done. However, in the long run, things appear to have taken a positive turn. Bitcoin has remained above the $9,000 mark for the past two months, and many have turned to exchanges like Coinbase and potentially spent their stimulus funds on crypto, so perhaps the results weren’t all bad.
Now, the EU is copying America’s tactics of trying to revamp the economy and pump money back into businesses throughout the continent. While the present EU-based stimulus isn’t anywhere near the amount of America’s (the U.S. stimulus plan amounted to more than 14 percent of the nation’s GDP, whereas the EU’s amounts to around two percent), there’s still nearly $1 trillion ($858 billion) that EU-based businesses can expect to receive within the coming weeks to help them recover financially following the devastating effects of the COVID spread.
The maneuver is being looked at positively by figures such as French president Emmanuel Macron, who stated the stimulus deal was “historic” for Europe.
At press time, the world’s number one digital currency has reacted well to the news and is now trading for just over $9,350, a considerable surge from the measly $9,100 it has been experiencing all week.
COVID Is Still Running Amok
Europe has been hit particularly hard by the coronavirus, with nations such as the United Kingdom, France, Spain and Italy all experiencing the worst effects. For the most part, the EU expects its economy to fall more than eight percent by the time 2020 is ready to say goodbye.
In addition, it doesn’t look like news surrounding the COVID spread is set to die out anytime soon. The United States is already mulling over the thought of more stimulus checks for Americans, as individuals and small businesses alike continue to be affected by the virus.