Bitcoin Soon To Experience Massive Buying Demand As Biden Prepares Three Trillion Dollar Stimulus Package
January 10, 2021 4:36 PM
Axios, an Arlington-based news outlet, reported Thursday that New U.S President elect Joe Biden has asked Congress to provide Americans with $2,000 in stimulus payments to help offset the economic devastation caused by the pandemic, The incoming president has also proposed a $3 trillion tax and infrastructure package as part of his “Build Back Better” program.
The incoming Biden administration’s plan to flood the U.S. economy with trillions of dollars, such move could ignite the next wave of Bitcoin (BTC) bull market, Bitcoin went on a frenzy run after the first stimulus package was distributed by Donald Trump administration.
“Economic research confirms that with conditions like the crisis today, especially with such low interest rates, taking immediate action – even with deficit financing – is going to help the economy”
If 2020 is anything to go by, the new tidal wave of stimulus could be another catalyst for Bitcoin as more money floods the market and makes its way into asset prices.
This is not only verified by Bitcoin’s historic outperformance over the past 11 years but also by the fresh wave of institutional money coming into the market. Institutions are buying Bitcoin with a clear purpose, and are increasing their HODLing with every slight dip.
Bitcoin’s digital gold narrative has been one of the biggest catalysts behind the institutional shift towards BTC. This narrative helped fuel Bitcoin's 300% rally in 2020 andit'ss more than doubling in price over the past three weeks. This trend could intensify in 2021 as the dollar's purchasing power continues to erode.
JPMorgan Chase has recently acknowledged that Bitcoin is taking market share from gold, Many investors sees Bitcoin as a safe haven with the richest man in the world interested in getting paid with bitcoin.