Trump is currently considering the second round of economic stimulus plan, the news led to changes in the market including Bitcoin.
Ironically, the funds printed by the Fed to support the economy have driven the asset’s entire upward trend since the bottom of Black Thursday almost completely.
The market has brought more impetus to Bitcoin
The bitcoin price may not break through 10,000 USD and maintain a strong momentum, however, bitcoin by market value has not yet reached a new low on the daily schedule.
Anxious buyers quickly bought out all the sell-offs, and as the Fed continues to print dollars to increase stable supply, these buyers may be increasingly eager to obtain quality assets .
At the same time, the Fed’s balance sheet recently exceeded $7 trillion.
It has to be said that stimulus efforts have helped the stock market’s recent rebound, and stimulus checks for individual taxpayers have returned to assets such as gold, stocks and even cryptocurrencies such as Bitcoin.
All of this money is in the hands of consumers, but there is nowhere to spend, resulting in more assets being purchased, and increased retail trade interest only further strengthens the transaction volume and volatility of traditional markets.
Risk appetite has largely returned to investors , partly because the economic recovery is faster than most people expected. Perhaps it has never fallen worse than expected as expected.
Another major factor is that many short-term retail investors are using the Fed as their stimulus to hand over funds. With the potential inflow of more funds, the capital market surged, and Bitcoin also surged.
Fed’s assets and liabilities are linked to cryptocurrency rebound
The black Thursday sale in March shocked the stock market and witnessed the fourth-largest one-day crash in Bitcoin history. In less than a month, Bitcoin fell from over $10,000 to under $4,000.
Since then, assets have been on a steady upward trend . The price of bitcoin has been rising as soon as the Fed announced that it will symbolically turn on the “printer” and restore it to full capacity.
With the arrival of mid-June, so far, the entire quarter has been a positive price driver. Unfortunately, this momentum is not enough to allow Bitcoin to break through $10,000 and hold, but another round of economic stimulus funds may be the driving force needed for assets.
After launching the same amount of stimulating checks, Coinbase showed that more than 1,200 bitcoins purchased on the exchange were related to this.
If another round of economic stimulus has a similar impact, it may provide Bitcoin with the purchasing power it needs to finally break through strong resistance levels.
The original text is from bitcoinist and was compiled by the Bluemountain Labs team. The English copyright belongs to the original author. Please contact the compiler for reprint in Chinese.