- CoinShares acquires Bastion to strengthen active crypto ETF offerings in the US.
- Active ETFs now outnumber passive funds, signaling rising institutional demand.
- US SPAC listing and SEC rule changes accelerate CoinShares’ market expansion.
France’s ballooning financial deficit is raising alarms across Europe’s economic landscape. The Banque de France (BdF) reported a staggering net loss of €7.7 billion ($8 billion) in fiscal year 2024, largely driven by high interest payments. This shortfall pushed France’s government deficit to €168 billion ($176 billion), or 5.8% of GDP, well above the EU’s 3% ceiling.
Financial experts warn this scenario could spur the European Central Bank (ECB) to inject fresh liquidity into the economy, indirectly benefiting cryptocurrencies like Bitcoin (BTC).
ECB’s Dilemma: Print Now or Later
Arthur Hayes, co-founder of BitMEX, explained at TOKEN2049 in Singapore that France’s deficit might force the ECB into large-scale money printing. With reduced investment from the U.S., capital from Germany and Japan that previously supported France is dwindling. Hayes predicts, “The ECB prints now or prints later, and in both cases, they lose control.”
Quantitative easing (QE)—central banks buying bonds to inject money into the economy—could become the ECB’s tool of choice to stabilize French spending and avoid capital flight. Approximately 60% of French bonds are foreign-owned, increasing the stakes of any fiscal misstep.
Bitcoin Could See a Fresh Liquidity Boost
Historically, QE has been bullish for Bitcoin. During the 2020–2021 bond-buying programs of the U.S. Federal Reserve, BTC surged over 1,050%, climbing from $6,000 to nearly $69,000. If the ECB follows a similar path in response to France’s deficit, analysts like Hayes suggest Bitcoin could once again benefit from the influx of liquidity.
Investors are closely watching Europe, as any large-scale monetary expansion may translate to new capital flowing into crypto markets. This could present opportunities for Bitcoin and other cryptocurrencies to absorb excess liquidity from the traditional financial system.
Also Read: European Stocks Slip as Trump’s $100K Visa Fee Sparks Global Backlash
France’s record-breaking deficit is more than a national concern—it’s a potential trigger for European monetary expansion. As the ECB faces limited options, the prospect of increased money printing could inject billions into global markets, with Bitcoin positioned to benefit. For crypto investors, this could signal a significant liquidity wave on the horizon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
