The incoming US President Joe Biden is all set to take oath on January 20 and many believe his first task in the office would be to work on a new stimulus deal that could be worth $1.5 trillion. A recent report by Reuters suggests that Congress was due to hear the new deal today, however, owing to the impeachment motion it might get delayed.
Biden throughout his campaign and even after the certification of results has maintained that the US citizens deserve better from the government in these troubled times. Trump administration in December passed a $900 billion stimulus bill guaranteeing $600 stimulus checks to the unemployed and front-line workers. However, many criticized the bill and deemed the $600 stimulus too low to cover the expense. Biden administration has called for a $2,000 stimulus check, however, as per sources, the new stimulus deal would offer $1,400 stimulus checks.
$600 is simply not enough when you have to choose between paying rent or putting food on the table.
We need $2,000 stimulus checks.
— Joe Biden (@JoeBiden) January 11, 2021
How Would Stimulus Deal Impact Bitcoin?
Bitcoin has historically benefited from the past stimulus deals and the upcoming $1.5 trillion deal could push its price to new highs. The main reason behind the rise in the price of bitcoin post-stimulus inflow is because people use that money to invest in the new store-of-value asset. Stimulus money also results in a stock market surge due to the flow of the same money.
Government stimulus deals have made the feds print nearly USD 9 trillion in 2020 itself, and as the printing spree continues it leads to deterioration in the value of the USD and its status as the world’s reserve currency. The stimulus deals even though quite helpful to the common public, really take a toll on the centralized monetary system pushing it towards a catastrophe quite similar to 2008’s financial crisis.
As the old-age monetary systems continue to crumble owing to the pandemic, Bitcoin has strengthened its position as a store-of-value and inflation hedge. With institutions looking at bitcoin as the next treasury asset over US Dollar, the top cryptocurrency is poised to reach new highs in 2021.