The EU Stimulus Deal Sees Bitcoin Bullishly React
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After European leaders agreed to create a €750 billion recovery fund for Europe, the leading cryptocurrency spiked to $9400 in just hours seeing a significant increase when it came to its trading volume. During the announcement in a joint declaration, EU leaders agreed to a new budget of around €1.1 trillion for 2021 to 2027.
“It is an ambitious and comprehensive package combining the classical [budget] with an extraordinary recovery effort destined to tackle the effects of an unprecedented crisis in the best interest of the EU.”
After seeing a $6 billion increase in the overall market capitalisation, bitcoin on the overall crypto space so massive benefits. Bitcoin saw similar increases in its value back in March/April when the United States announced Its own stimulus program when COVID-19 was in full force all over the world.
During this pandemic though, bitcoin has been relatively correlated with the S&P500 and the overall global stock market. So even though the correlation is definitely there, it doesn’t necessarily mean anything good for the flagship cryptocurrency.