It is only a matter of days now until the 46th president of the United States is inaugurated. Cointelegraph suggests that President Biden’s USD 3 Trillion stimulus package could give Bitcoin a boost and set its price rocketing.
It argues that this “could ignite the next leg of the BTC bull market, as more investors seek refuge from a crumbling United States dollar.”
According to Axios, Biden has asked Congress to provide Americans with $2,000 in stimulus payments to help offset the economic devastation of Covid-19. Alongside this he has also proposed a $3 trillion tax and infrastructure package as part of his “Build Back Better” programme.
It has been said before that some may use their stimulus payments to purchase BTC, and now it is being repeated. Cointelegraph says: “If 2020 is anything to go by, the new tidal wave of stimulus could be another catalyst for Bitcoin as more money floods the market and makes its way into asset prices.” It may be even more true now as Bitcoin is gaining favour as a hedge against inflation. Furthermore it is taking a share of the market from gold, something even JP Morgan Chase admits, as Bitcoin passed the value of 22 ounces of gold last week, another all time high for the leading cryptocurrency.
New institutional money is also busy entering the Bitcoin market, and Cointelegraph says they are showing ‘great purpose’ in the buying, and may become “the industry’s ‘mega HODLers’.”
As Biden doubles down on his calls for economic relief in a country that lost 140,000 jobs in December alone, it could be good news for Bitcoin, and for the other altcoins, as interest in them is gaining ground. Perhaps buyers should remember that Bitcoin was once worth very little, and there are new coins emerging all the time that have the potential to offer even greater utility than BTC in the long-term, so it may be wise to consider those that can at this moment be bought for only a few cents or dollars. That foresight, or luck, is what created so many Bitcoin millionaires.