🔥BRUTAL🔥

💸China launches HUGE ECONOMIC STIMULUS before trade negotiations with Washington

📢The president of China seeks an advantage in the first trade negotiation with the U.S. on Saturday

What were these stimuli for and how does it affect #Bitcoin ⁉️

🔸These measures were taken to stabilize markets, boost technological innovation, and protect small businesses

🔸China announced general interest rate cuts, along with other measures that could inject 2.1 TRILLION yuan ($291 billion) into the economy

How does this interest rate cut and liquidity injection from China affect ⁉️

-By generating more money in circulation, it is POSITIVE for #Bitcoin and cryptocurrencies as it equates to more money available for investment

-Additionally, these expansive monetary policies destroy the purchasing power of FIAT money and highlight #Bitcoin

-This puts China at an advantage during economic talks, as growth expectations in China are GREATER than those in the U.S.

How does this stimulus benefit China in the NEGOTIATIONS ⁉️

-With this stimulus, China shows internal strength, projects stability and growth, which reduces its need to concede

-Both the U.S. and China must reach AGREEMENTS to AVOID an even greater economic growth decline

What could happen ⁉️

📍Both the U.S. and China have reasons to at least discuss reducing tariffs after weeks of confrontation that threaten trade relations between the two largest economies in the world

📍If they are unable to deliver results, we could see a strong negative reaction in the markets

Source: Bloomberg