A potential recession in Germany could have a positive effect on Bitcoin (BTC) prices according to crypto analyst Marcel Pechman. He believes that a further drop in Germany’s Gross Domestic Product (GDP) is likely to cause the European Central Bank (ECB) to ease their monetary policy as European governments cannot afford to pay higher interest rates on their bonds.
Pechman commented on the euro’s experimentation, saying: “The euro was officially launched 21 years ago, versus Bitcoin 14 years ago. That’s how experimental the euro currency is.”
He argued that if the German economy worsens, this could be beneficial for Bitcoin in the mid to long-term, as citizens seek an alternative to a failing fiat currency.
The Wall Street Journal recently published an article suggesting that Germany is having a negative impact on Europe’s economy, claiming that it has become “the biggest drag”. They identified several structural challenges facing the country, such as the costly shift to renewable energy, changes to global supply chains and a lack of skilled workers, which make it expensive to produce goods in Germany.
