In order to cushion the feared economic effects of the corona virus, the international central banks are loosening their monetary policy. According to cryptocurrency experts, this could primarily push Bitcoin.
Monetary policy eased
To support companies in this difficult situation, the international central banks have decided on various measures to provide them with cheap loans.
The European Central Bank (ECB), for example, has decided on a whole package of measures to counteract the economic consequences of the coronavirus pandemic. Although the key interest rate in the euro area remains at a record low of zero percent, the monetary authorities want to spend an additional EUR 120 billion on bond purchases by the end of this year. In addition, the central banks of Great Britain, Canada and the United States decided in March to lower their key interest rates by 50 basis points each.
Crypto experts optimistic
But despite an interest rate hike and the formal independence of the US Fed, US President Donald Trump calls on the currency keepers to make another clear cut in interest rates: “Our Federal Reserve … should lower the key interest rate to the level of the nations that compete with us,” Trump wrote Twitter. The Fed must be the leader in this regard, not lag behind, he said.