Bitcoin is fluctuating around the $50K level, affected by the US Senate’s announcement
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Answer Bitcoin is fluctuating around the $50K level, affected by the US Senate’s announcement
Bitcoin is back above the $50,000 level after the Senate passed and approved Biden’s $1.9 trillion stimulus package.
Bitcoin (BTC) is off to a stellar start to the week as it trades above the $50,000 resistance following news that the US Senate has passed President Joe Biden’s $1.9 trillion coronavirus stimulus package.
At the time of writing this article, the cryptocurrency is trading at $50049.63 with a daily gain of 0.56%, the highest level over the weekend based on data from the site. Flying bird.
Stimulus Packages and Bitcoin Price Rise:
The introduction of stimulus packages has a track record of increasing bitcoin prices.
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Basic economics is simple, stimulus involves printing a lot of paper money that increases the amount of money in circulation.
Inflation comes with this increased circulation, which reduces the purchasing power and the overall value of fiat currency, in this case we are talking about the global currency the US dollar.
Citizens and businesses alike will not want to fall into the trap of a depreciating dollar over time, and are therefore willing to explore options to help protect their holdings from inflation.
This is where gold and bitcoin come into play.
Although the popularity of Bitcoin is still under discussion, Bitcoin has recently gained increasing adoption over the past year as a better store of value and a hedge against inflation.
Stimulus packages can also be used by some citizens to buy bitcoin, and we may see an increase in the flow of money into cryptocurrencies as stimulus checks begin to be delivered.
Companies like MicroStrategy, which has a track record of strategically investing shareholder funds in Bitcoin, may find new reasons to increase their overall Bitcoin stakes.
Bitcoin affected:
The influx of money into bitcoin is bound to increase its price over time.
Read:Bitcoin Drops Below $21,000, XTZ Up 8%
The digital currency is already responding to this possibility with the growth it has achieved in the past periods.
Bitcoin is expected to reach the target of $58,000, which is the currency’s previous high, and in the event the distribution of stimulus checks accelerates we may see Bitcoin reach new highs before the end of the first quarter of 2021.
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