Bitcoin is expected to have a new price rally as the US Senate passes a new $1.9 trillion stimulus bill and more institutional investment in the coin is coming.
According to reports, on Saturday, March 6, the US Senate passed the anticipated $1.9 trillion stimulus bill, which is roughly two times larger than the market capitalization of BTC. According to investors, just like the previous stimulus in April of 2020, this will have a positive short-term impact on Bitcoin price.
In April 2020, when the first stimulus bill was announced, it resulted in a massive bull run in both the U.S. equities market and the cryptocurrency market. Peter Brandt, a trading pundit, believes that the combination of devaluing the dollar and the new stimulus package will help Bitcoin.
He, on his Twitter feed, wrote:
“The devaluation of the purchasing power of the U.S. Dollar $DX_F has only just begun. This is why Bitcoin $BTC, real estate, U.S. equities, and commodities will continue to trend higher when expressed in $USD fiat terms.”
The news has already impacted Bitcoin price as the coin again surged above $50K on March 7 and is currently trading above $50K at the time of writing.
But the new $1.9 trillion stimulus bill is not the only factor that will improve the market sentiment around Bitcoin (BTC). New institutional investment in Bitcoin is also around the corner. On Monday, March 8, Aker ASA, a Norwegian investment firm listed on Oslo Børs (OSE) stock exchange, has announced that it has created a new subsidiary, Seetee AS, to invest in the Bitcoin ecosystem.
The firm has allocated 500 million Norwegian Krone (approximately $58 million) for Seetee AS. Aker ASA’s announcement, describing Seetee AS mission, reads:
“Seetee will initially focus on 1) investing in and owning bitcoin, 2) joining the Bitcoin and broader blockchain community and establishing partnerships with leading players, 3) launching Bitcoin verification operations, and 4) building and investing in innovation projects and companies in the Bitcoin and blockchain ecosystem.”
Furthermore, a Chinese company Meitu has also bought 379.1214267 BTCs and 15,000 ETHs on March 5. Meitu announced:
“The Group has purchased 15,000 units of Ether and 379.1214267 units of Bitcoin (“BTC”), both cryptocurrencies, in open market transactions at an aggregate consideration of approximately US$22.1 million and US$17.9 million respectively, on March 5, 2021.”
Amid all this, the crypto community is expecting a new BTC rally. But will it happen and how far will Bitcoin go, only time will tell.
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