As the second wave of coronavirus pandemic has started to run havoc in different countries, the Biden Administration is gearing up to announce another set of relief packages for the Americans. On top of the $2.3 trillion proposed stimulus package in the pipeline, the report suggests the White House is working on another $1 trillion American Families Plan proposal. The details of the newly proposed spending plans are yet to be discussed however, early reports indicate it would cover child care, universal pre-K, and community college tuition fee.
The slew of relief packages by the Biden Administration could offer direct cash stimulus to citizens which in turn could boost the stock and cryptocurrency market. The stimulus packages in the form of cash benefits to the citizen often flow into the market as people look for a better hedge against inflation in these troubled times. Bitcoin and cryptocurrencies have emerged as viable investment options offering better returns than most of the traditional assets.
Would Bitcoin Regain its Declining Bullish Momentum With Stimulus Cash Flow?
Bitcoin price correction last weekend saw the top cryptocurrency fall to sub $54K price levels after registering a new ATH in the second week of April. The retrace of nearly 20% did cause panic among many traders as many blamed the recent Chinese outage as the main cause, as it leads to a sharp drop in Bitcoin’s hashrate.
Historically government-led stimulus package has proven beneficial for Bitcoin and as the debate around its price reaching a potential top gains momentum, the Biden administration’s proposed relief and spending package could help it begin the next leg of the current bull run. The top cryptocurrency has also shown a distinct price pattern where it has registered a new ATH followed by a sharp retrace and a prolonged consolidation phase. As mainstream bitcoin and crypto adoption continues to rise, the stimulus package could offer a much necessary boost for the top cryptocurrency.