Bitcoin at $ 100.000? It is a value that many experts expect. However, bitcoin is receiving an external push from the same organization that is constantly criticizing its credibility. The US government (in its usual way) is helping the benchmark asset meet analysts' expectations with constant advertising.
The $ 1,9 trillion Stimulus package could change everything
The last thing the US economy needs right now is more inflation. But the only thing US citizens need to support their well-being through the global Covid-19 pandemic is a stimulus bill, according to the US government.
For Bitcoin, this is a solid entry point for some of the largest financial institutions and independent investors who will seek a reliable outlet for their wealth.
Last year, when the first check was posted, the stock market took a steep dip as inflation forced the richest to take refuge in Bitcoin. Gold also fell significantly as investors began to question its scarcity and historical performance against Bitcoin.
While whales are in a better position to secure the greatest amount of profit, the smallest investors can outperform even the most skilled trader simply by holding only about half to a quarter of Bitcoin's current price.
Interestingly, some "Bitcoiners" who launched their previous stimulus check in the market have already secured decent profits. At the current market rate, the $ 1200 stimulus check awarded to US citizens would be worth nearly $ 10.000 if recipients invested it in Bitcoin.
The ironic advertising of Bitcoin
Today it was announced that the $ 1,9 trillion stimulus package is expected to be approved by the House and sent to the Senate. After the announcement, Bitcoin "plummeted" to the top.
Although the bullish recovery cannot be attributed to the news, Bitcoin is set to benefit from the result of US "fiat printers" working overnight. Ironically, this comes shortly after Treasury Secretary Janet Yellen dented the asset's credibility, saying she didn't believe bitcoin would be used extensively as a transaction tool.
Yellen thinks it is too speculative an asset and that people should know that its value is far too volatile. He says he worries (sure) that investors may suffer too large losses when they decide to buy Bitcoins, during an interview with CNBC television station.
Yellen's skepticism towards Bitcoin could influence future policies, but the Bitcoiners are keeping their fingers crossed in hopes of a positive outcome, as the Secretary previously spoke of the need to consider the benefits of digital currencies.
In the short term, however, Bitcoin is poised for a new bullish rally should the bill receive its final approval in the near future.