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.
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