Just-In: Biden Administration Passes $1.9 Trillion Stimulus Package

The Biden Administration passed the much-awaited $1.9 trillion Stimulus relief bill that the President had promised after taking the office. The House passed the stimulus bill with a 219-212 vote and it has been forwarded to the Senate for approval.

The breakdown of the relief package is as below,

• $1,400 stimulus check to most individuals, and the same amount for each dependent. Checks start to phase out at $75,000 in income and go to zero for individuals making $100,000.
• A $400 per week unemployment supplement through Aug. 29, along with an extension of programs making millions of more people eligible for jobless benefits
• An expansion of the child tax credit to give families up to $3,600 per child over a year
• $20 billion for Covid-19 vaccine distribution and $50 billion for testing and tracing efforts
• $350 billion in state, local and tribal government relief
• $25 billion for assistance in covering rent payments
• $170 billion for K-12 schools and higher education institutions to cover reopening costs and aid to students.

The stimulus packages have historically aided the stock market and the crypto market as people invest their money received from the government in hope of multiplying its value. The raging pandemic has made many retail, as well as institutional investors, look for a better store of value as Gold seems to have lost its luster and government bonds are being issued at negative interest rates.

Bitcoin Price Could Get a Necessary  Boost

Bitcoin has remained under $50,000 for most of this week after breaking to a new all-time high of over $58,000 in the past week. The price did show signs of recovery yesterday after breaking above $51,000 but could not consolidate its position.

The on-chain metrics for the top cryptocurrency still look quite bullish as institutions continue to hoard bitcoin with every dip. The recent purchase of over $1 billion Bitcoin by MicroStrategy and another $170 million by Square Inc also didn’t have any impact on Bitcoin price. This is also a sign of a maturing asset as the market seems to be acquainted with the idea of institutions buying bitcoin worth billions.

Bitcoin price was trading at $46,650 at the time of writing and as the US market opens we might see a minor price recovery.