The last financial decisions from China and Germany It affects global markets, with possible repercussions on encryption such as bitcoin.
The increase in general spending can reduce the restrictions of American policies, as risky assets such as the most famous cryptocurrencies in the world prefer.
China and Germany: The role of the Forex market in the fate of the encrypted bitcoin
Global economies are at the stage Deep changes, The recent financial movements by China and Germany are a clear demonstration of this.
With the increase in public spending by two major economies in the world, the financial market reaction to the enthusiasm, especially in the risky assets sector such as bitcoin.
China recently announced an increase in the goal of the financial deficit, It raised from 3 % to 4 % of GDP. This decision is part of a broader strategy aimed at stimulating local demand and supporting economic growth.
According to the Prime Minister Lee QiangThe goal is to face the impact of the external challenges facing China in the main sectors such as trade and technology.
Analysts view this increase in public spending as a clear sign of confidence in the country’s ability to maintain stable economic growth despite the global opposite winds.
In parallel, Germany decided to abandon traditional financial caution, announcing investments in hundreds of billions of euros in infrastructure and defense.
This change represents a historical turning point for German economic policy and can provide a large boost for the growth of the entire eurozone.
According to economists in Bloomberg, the increase in defensive spending will have a Positive periodic effect, While the infrastructure plan can generate long -term benefits by improving the country’s productivity.
Bitcoin and markets in the gathering
These decisions were immediate repercussions on the financial markets. Asian and European stock exchanges have witnessed a positive gathering, while Bitcoin witnessed a 3 % increase, as it reached a value 90,000 dollars.
It seems that the feeling of investors is affected by the idea that higher public spending may compensate for possible financial restrictions in the United States, providing support for the most volatile assets.
In addition to the direct impact on the markets, the new financial policies of China and Germany can exercise an indirect impact on bitcoin through the currency market.
The increase in public debt generally leads to an increase in the supply of bonds, which reduces their price and causes revenue to rise. This process, in turn, It strengthens the national currency.
The return on German government bonds increased for 10 years by 36 basis points, reaching 2.73 %, the highest level since November 2023.
Consequently, the difference between the revenues of the United States and the German government narrowed, which led to a decrease in the value of the dollar against the euro.
The weakening of Greenback, which is a global safe haven, has an impact on mitigating financial conditions at the international level and stimulates a A greater appetite for risks Among investors.
The weakest dollar is generally seen as a positive factor for Bitcoin, because it reduces the cost of purchase for investors working in other currencies and stimulates the demand for alternative assets.
Moreover, the appetite of the biggest risk in financial markets tends to prefer crying currencies, which are seen as high -yielding speculative tools.
Will uncertainty about financial policies set the next trend?
The coming weeks will be decisive to assess the effects of these new financial policies on global markets and bitcoin.
If the increase in public spending in China and Germany continues to support bull feelings, the cryptocurrency may benefit more.
However, investors will also need to monitor the US financial policies closely and any Central Banks to New economic dynamics.
In the end, Chinese and German financial decisions are a major factor in the current global economic scene.
Its impact on financial markets and on cryptocurrencies, especially Bitcoin, highlights how the government’s policies directly and indirectly affect the value of digital assets.
With the development of the macroeconomic scenario, it will be necessary for investors to remain updated and adapt their investment strategies accordingly.
