Beneficiaries of the U.S. stimulus package who invested their money in Bitcoin now have extra $5295 cash as returns on their investment.
Bitcoin’s price has surged by 440% since April 2020, reaching its all-time high of $41,000, an unprecedented move in the digital asset price.
In a Jan 13 tweet by @BitcoinStimulus, the report indicates that recipients of the $1,200 April stimulus who invested their money in Bitcoin now have their equity worth $6490.
Factors driving the price of Bitcoin high
The price of Bitcoin has kept rising since central banks worldwide have kept injecting capital into the financial market to save the economy from declining.
Investors and financial institutions have been mounting unending pressure on central banks to inject money into the system. Meanwhile, such an intervention will inevitably lead to inflation, paving the way for Bitcoin and gold as the investors resort to edge against inflation.
According to Dan Tapiero of 10T Holdings, United States Twin Deficits plunged to their lowest level in decades. Due to the inability of interest rates to rise, the CEO argued that this is the best time for the rally in Bitcoin and gold prices. Tapiero added that the budget Bernnnie inherited is at its 4-decade low. And it is impossible to raise the interest rate when the debt is huge.
Consequently, the price of the U.S. dollar will keep falling; otherwise, equities will suffer. According to the analyst, all these are some of the major reasons for the continuous rise in the prices of Bitcoin and gold.
Added to the above factors, the call for decentralized systems, such as Bitcoin, has intensified following the ugly incident at U.S. Capitol. The Twitter Chief, Jack Dorsey, expressed deep interest in Bitcoin. He revealed his position on the digital asset in his statement while clarifying the development that led to Twitter’s suspension of President Donald Trump’s account.
Dorsey explained that his passion for Bitcoin stems from the fact that it exemplifies a basis of internet technology that is devoid of influence or control by any individual, group, or government. He expressed hope that as time goes on, the internet will witness more of such innovations.
The increasing anticipation of Bitcoin as a store of value and the central subject of decentralized systems is boosting the growth of Bitcoin.
How will a fresh stimulus package affect the market?
A new stimulus payment by the U.S. government at present or in the future would boost the BTC growth. Like the stock market, retail traders are usually propelled by Bitcoin and derivatives. The fact that BTC is a highly volatile asset endears it to retail traders. In the meantime, investors and analysts are hopeful that Bitcoin will maintain its uptrend. According to Scott Melker, a crypto investor, if Bitcoin breaks above $36,000, then a new high will be formed.
Bitcoin’s position as a means of protection against inflation and currency devaluation is still strong. This is because central banks keep increasing their stimulus package due to the pandemic that is resulting in the loss of jobs. Edward Moya of OANDA says large institutions are now opting for Bitcoin as they can’t neglect an asset that keeps soaring high.