Bitcoin Demand Might Skyrocket Due to US Stimulus Package

US President Donald Trump and the Senate have agreed to a massive $2 trillion stimulus package to fight coronaviruses. The bitcoin and crypto markets, as well as the traditional markets, have already been significantly boosted by this historic economic relief package.

02 April, 2020 | AtoZ Markets – Many crypto traders expect bitcoins to reach historic highs before 2021 regarding the global pandemic. Online searches for cryptocurrencies have increased as investors can turn away from traditional markets while staying at home.

US Fiscal Agreement on $2t Stimulus Package

The US Senate and the Trump administration have reached an agreement on a massive fiscal stimulus package. It aims to stem the economic fallout from the coronavirus epidemic. It might not cause the BTC market to skyrocket just yet, but investors could see modest and gradual improvements from 2020.

The plan is expected to rise to $ 2 trillion and will be put to the Senate vote on Wednesday. The US Federal Reserve is already pursuing a zero-interest-rate policy. It announced an open-ended asset purchase program, or quantitative easing earlier this week. Social Capital CEO Chamath Palihapitiya said:

With this announcement, the total value of global stimulus efforts has increased to $ 8 trillion, or 9% of the world’s GDP.

Read More: What Caused BitMEX Mass Crypto Liquidations?

US Stimulus Package Might Improve Bitcoin Market

Wayne Chen, CEO of Interlapse and founder of Coincurve, said it targeted a segment of the population that wants to save “to prepare for the worst. Investment in Bitcoin could be put on hold:

I don’t think that an additional deposit in their bank account will trigger massive buying activity across the cryptocurrency market.

“The US government cash payments will go straight into people’s pockets. Naturally, some people will buy bitcoins. But fewer people expect otherwise,” said Chris Thomas, manager of digital assets at Swissquote Bank.

Thomas added that fresh money has already entered the market in the past ten days. The fiscal stimulus is unlikely to have a significant impact on bitcoins in the short term. A data company, Glassnode, suggests that investors have accumulated coins to less than $ 5,000 at the beginning of the month.

However, this demand area could come into play again if the coronavirus continues to spread around the world. It will cause global liquidity to contract similar to that seen earlier this month, he said.

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