2026-01-20 07:45:25

December data show a decline in German producer prices, with a 2.5% year-on-year decrease. This movement reflects persistent deflationary pressures in the European economy and could impact the European Central Bank's monetary policy decisions.

For the crypto space, these macroeconomic indicators are relevant. Deflation in producer prices generally precedes changes in interest rate policies. If the ECB adopts a less aggressive stance, digital assets could benefit from looser monetary conditions.

It's interesting to observe how traditional economy and decentralized markets are increasingly interconnected. Inflation/deflation metrics in Europe are signals that crypto traders closely monitor. What implications do you see for the next quarter?

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SchroedingerMiner

· 9h ago

Europe is facing deflation, is the crypto market about to take off... --- BCE easing is highly likely, retail investors, get ready to buy the dip, bro. --- Wait, can deflation really benefit crypto? It seems like historically they've all lost out. --- Germany's production side dropped 2.5%... This is a prelude to interest rate cuts, following the Federal Reserve's logic. --- I'm a bit skeptical; with Europe's economy in that state, can we still expect easing to boost the crypto market? --- Q1 next year should be a key window, start accumulating now, start accumulating now.

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SatsStacking

· 10h ago

Germany's producer prices fell by 2.5%, which essentially means Europe is in the prelude to "money printing." This is definitely a positive signal for the crypto circle. If the BCE really cuts interest rates, the days of crypto market狂欢 will come, and liquidity can flow anywhere. The worse the data on this side of Europe, the greater our opportunity... Irony, isn't it? Deflation sounds scary, but for us holding coins, it's actually a paradise—loose money is on the way. By Q1 of this year, we should be able to see the signs. Friends still stacking now are making a killing.

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DAOdreamer

· 10h ago

Is BCE about to flood the market again? Looks like there's a show in the crypto world now.

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RamenStacker

· 10h ago

Europe is experiencing deflation again, which is actually a signal for us... The ECB either needs to loosen policy or the economy really can't withstand it.

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RetailTherapist

· 10h ago

European deflationary pressure is back again. Does this mean the ECB will loosen its grip... Will the crypto market rise? --- With deflation here, the easing cycle is speeding up. I bet BTC can hit a new high next month. --- Honestly, when German data tanks, the European Central Bank has to loosen monetary policy. For us holding coins, that's purely good news. --- Wait, is deflation really that friendly to crypto? I feel a bit skeptical... --- It's the same logic again... Easing → crypto rises, but what happened? We said this half a year ago, and look at the current situation. --- The key is whether the ECB will actually cut interest rates. Deflation alone isn't enough; policy is the real king. --- The arrival of European deflation is indeed a major event, but can the crypto market truly benefit from it... I remain skeptical.

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