Mitch McConnell, Senate Majority Leader, states that the United States Congress has reached a consensus on a proposed $900B pandemic stimulus package. McConnell noted that a vote on the $900 billion stimulus bill could arrive Sunday evening, as CNBC reported on Dec. 20. Moreover, the stimulus package will offer a boost to the stock markets. Further, crypto investors are keen to propel Bitcoin(BTC) via this investment and continued depreciation of the dollar.
According to the reports, the new stimulus bill will issue $300 a week under federal unemployment benefits and $600 payment to the U.S. citizens. It will also provide benefits to education, vaccine distribution, and small business. In what could be seen as great news for those in crypto who embrace FED’s liberal acceptance of money printing as it continues to depreciate the dollar. The GOP senators were partially successful in trying to stifle the emergency lending powers of the FED, concerned with the growing financial burden of the U.S.
Stimulus Bill and its impact on Bitcoin price
With Christmas around the corner, the crypto industry is optimistic as Bitcoin proceeds to set new record highs over the weekend. BTC price is currently rallying at $23,658.48, according to CoinMarketCap. The agreed-upon stimulus bill could present an additional boost to the crypto market and especially Bitcoin. Further, the stimulus relief packages serve to buoy the conventional markets and will most probably witness an increase in cryptocurrencies’ price.
Bitcoin has been witnessing extreme institutional demand and is setting its state as a hedge asset or store-house of wealth. Bitcoin investors consider the proceeded flood of government-issued relief money could give massive thrust to the crypto price. As the Federal Reserve issues money to fight the coronavirus pandemic’s economic agitation, inflation is expected to grow and lower the dollar’s purchasing power, therefore a price boost to crypto and BTC.
Moreover, the monetary policy of the Federal Reserve has faced criticism. Additionally, the central bank’s debt proceeds to increase. For bitcoin proponents, the heedless spirit at which the Fed mints money reflects light on the anti-inflationary mechanisms and value in the scarcity of the pioneer crypto.
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