United States Congress Agree on $900 Billion Stimulus Bill, What it Means for Bitcoin

Spread the love

Senate Majority Leader Mitch McConnell says that United States Congress has reached an agreement on a proposed $900 billion pandemic stimulus package, according to CNBC.

$900 billion coronavirus stimulus and Bitcoin
McConnell said that a vote on the $900 billion stimulus bill could happen Sunday evening, as reported by CNBC on Dec. 20. As the stimulus package will provide a boost to the stock markets, crypto investors are expecting a further boost to Bitcoin(BTC) through investment and continued depreciation of the dollar.

$900 Billion Stimulus

While the bill remains undisclosed, the Wall Street Journal has reported that the new stimulus bill is expected to issue $300 a week in federal unemployment benefits, as well as a $600 payment to US citizens—with a portion dedicated to education, vaccine distribution, and small business.

In what could be seen as good news for those in crypto and Bitcoin who welcome the Fed’s liberal use of the money printer as it continues to weaken the dollar, GOP senators were only partly successful in trying to stifle the emergency lending powers of the FED, concerned with the growing financial burden of the US.

According to the WSJ, the Federal Reserve will still be able to introduce emergency lending programs without the approval of Congress, although not at the scale of the relief programs initiated at the beginning of the coronavirus pandemic.

Bitcoin, Stimulus, and Dollars

As Christmas draws nearer, the crypto market is optimistic as Bitcoin continued to set new record highs over the weekend breaking the $24,000 level for the first time in its short history. BTC price is currently $23,658.48 according to CoinMarketCap

The agreed-upon stimulus bill could provide a further boost to the crypto market and particularly Bitcoin. Historically the stimulus relief packages serve to buoy the traditional markets and will most likely see a rise in the price of cryptocurrencies.

A Bitcoin has been seeing outrageous institutional demand and is solidifying its status as a hedge asset or store of wealth, Bitcoin investors believe the continued flood of government printed relief money could provide a huge boost to the crypto’s price. As the Federal Reserve prints money to combat the economic disruption of the coronavirus pandemic, inflation is expected to rise and cause a loss of purchasing power in the dollar and a price boost to crypto and BTC.

The monetary policy of the Federal Reserve has also been heavily criticized and the central bank’s debt continues to rise. For Bitcoin advocates, the reckless abandon at which the Fed prints money shines a light on the anti-inflationary mechanisms and value in the scarcity of the pioneer cryptocurrency—a narrative that traditional institutions and investors are beginning to understand.

Image source: Shutterstock

 811 Interactions,  6 today

Trump’s former economic adviser on why Bitcoin is not a “trustworthy store of value.”

On its way down, the price of Bitcoin sometimes encounters several bearish sentiments arguing that the currency should not have Read more

XRP holders denied participation as third-party claimant in the Ripple-SEC lawsuit.

The judge presiding over the SEC-Ripple case has rejected the assets holders' request to appear as third-party claimants in the Read more

Over $40b in stimulus payments likely to end up invested on Bitcoin.

Following the approval of the trillion-dollar stimulus programme by US officials, many Americans got their own stimulus checks. According to Read more

According to Coin Centre, the proposed FinCEN law is a “grave danger to personal privacy.”

The advocacy group takes aim at the new obligation to produce currency transaction reports for crypto transactions in its most Read more

Floyd Mayweather-promoted ICO’s Co-founder jailed for 8 years .

The co-founder of the fraudulent 2017 ICO Centra Tech was sentenced to eight years in prison for his role in Read more

BitGo is granted a confidence licence by New York regulators

Goldman Sachs-backed crypto custodian BitGo has secured a licence from the New York Trust to act as an independent custodian Read more

Ripple is loyal to San Francisco, said co-founder Chris Larsen.

In October last year, Chris Larsen, co-founder of Ripple, said that the company would consider moving to other countries, citing Read more

Yellen’s criticism of Bitcoin dismissed by Miami Mayor

Miami and Mayor Francis Suarez have worked over the last few weeks and months to position the city as the Read more

US judge dismisses the case of crypto fraud against the BNT token issuer.

The U.S. Federal Judge ruled that the case against the crypto corporation Bancor had been dismissed, citing the lack of Read more

Leave a Reply

Contact Us