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ECB To Print More Money: How Could This Impact Bitcoin?

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The European Central Bank (ECB) is getting prepared to print more money in order to deal with the current low growth rates that the eurozone is experiencing. However, printing money may not be the best solution to these problems. Anthony Pompliano, the co-founder of Morgan Creek Digital, seems to have a very negative opinion about this. 

Pompliano Worried About Euro Printing

Mario Draghi, the president of the European Central Bank, has been working in order to launch a new package of monetary stimulus that is expected to boost the eurozone economy in the coming months and years. There are many countries that are showing issues with their industrial production. 

The Eurozone Manufacturing Purchasing Managers Index (PMI) reached a 79.month low of 46.6 in July when the market expected a 47.6 mark. The services PMI has also dropped to 53.3, although this shows it continues growing. 

Chris Williamson, Chief Business Economist at IHS Markit, commented about this:

“The eurozone economy relapsed in July, with the PMI giving up the gains seen in May and June to signal one of the weakest expansions seen over the past six years. The pace of GDP growth looks set to weaken from the 0.2% rate indicated for the second quarter closer to 0.1% in the third quarter.”

A few days after the announcement of these results, Mario Draghi said that the economic outlook is getting worse and worse in manufacturing and in countries where manufacturing is very important. The market is currently expecting a 10-basis points rate cut in September. At the same time, he explained that the inflation rates that they are seeing in the market are also not what they are expecting. 

The ECB is expected to keep its stimulus in the economy in order to keep price growth elevated or a while and compensate previous weakness. After the announcement, the Euro reached its lowest point since early 2017 against the US dollar. 

Anthony Pompliano, an important figure in the cryptocurrency market, wrote on Twitter that the ECB is going to be cutting rates and print more money at the same time that Bitcoin is going to be halving in the future. 

Bitcoin has a capped supply of 21 million BTC coins that are expected to be released to the market in 2140. With inflation rates that get reduced every four years, Bitcoin could be seen as a store of value in the future, and with its halving in 2020, things could get even more interesting.

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