After hitting an all-time high (ATH) of near $42,000, Bitcoin price started a downside correction on Sunday evening. This correction dropped the coin price to $35,000 levels with a 13% downward moment at the time of writing.
According to some sources, the US new Joe Biden-administrated government is planning to create another $3 trillion stimulus package for Covid-19 relief and infrastructure. Some experts believe that the new stimulus package will give Bitcoin price a fresh and even better start.
In this stimulus, Americans may get a $2,000 coronavirus payment, alongside a tax and infrastructure package worth $3 trillion. Bitcoin proponents believe that this will give Bitcoin another strong rally with the price reaching above $50,000.
The previous stimulus announced back in July of 2020 helped the coin to record a nearly 300% gain by the end of 2020 as institutional investors invested large amounts in Bitcoin. The recently announced stimulus is also expected to repeat these massive gains.
A Twitter account named Bitcoin Archive, on Sunday wrote:
“Bitcoin JUMPED +35% when the 3 trillion stimulus was announced in July 2020. That could take BTC to 55K if it happened again.”
A crypto enthusiast on Twitter noted that after the announcement of the package, long calls for Bitcoin options on the Deribit exchange had increased. He wrote:
“After Biden’s confirmation that he will push out a $3 Trillion economic rescue package (can’t really call it a stimulus), options activity on Deribit shows big increase in long dated calls in the area north of $100k. Market says, #bitcoin number go up to six figures by September”
The recent Bitcoin rally has helped the overall crypto industry. Fueled by ever-increasing debt and fears of a devalued American dollar, investors, institutions, and everyday Americans see cryptocurrency as a legit alternative to the dollar.
Inspired by the growing popularity of cryptocurrencies, a 56 years old bar owner wants to sell his two side-by-side bars, Hellcat Annie’s and Scruffy Duffy’s in the Hell’s Kitchen neighborhood of Manhattan for 800 ETH or 25 BTC, which roughly worth $1 million.
Cryptocurrencies are now an undeniable future. Most recently, the market cap of all crypto assets that exist in the industry has also surpassed $1 trillion. As Crypto Economy reported, along with Bitcoin, Ethereum is now the second crypto asset in the list of the world’s top 100 assets by market cap.
If you found this article interesting, here you can find more Bitcoin news
