A $20K BTC price level is likely as the current president Donald Trump authorized his administration to cooperate with the president-elect Joe Biden’s transition team as we are reading more in today’s Bitcoin news.
The number one cryptocurrency increased on Tuesday, a few hours after the General Services Administration’s head Emily Murphy informed Biden that Mr. Trump approved the government transition process officially. The statement came right after Michigan certified the election results but the state didn’t find evidence of voter fraud as it was claimed by Mr. Trump. The BTC-to-USD exchange rate was up by 0.17 percent which is in line with the US Stock futures that climbed in the pre-session on Tuesday. Futures tied to the S&P500 for example, increased by 0.6% before the London opening bell. Asia stocks surged as well. A $20K BTC price level is now the next target.
The markets were uneasy after the sitting US Treasury Secretary Steven Mnuchin refused to express his support to the Federal Reserve’s emergency lending facilities. The analysts noted that Trump used his human resources tool to constrain Biden’s administrative powers to fight the US Economic fallout. Bitcoin remains one of the largest beneficiaries of the Fed’s lending program. The Central Bank printed about 20 percent of the US dollar bills which existed in 2020 alone. On the other hand, BTC completed the opposite with the inherent economic policy that cut the supply by half every four years.
Fears of inflation as well as the negative-yielding debts led the investors into scarcer alternatives like BTC. The cryptocurrency increased by 50 percent right after the FED announced its expansionary programs. A $20K price level is likely now since the clear transition for Biden will pave the way for a long-pending COVID-19 relief package. The president-elect had committed to increasing government spending to fight the rising unemployment alongside COVID-19 infections so if the Democrats win the majority in the Senate and Congress they will bring the second stimulus package without facing any political resistance. Alex Mashinsky explained:
“People must understand that there is no return in bonds, and they carry many risks. And buying into the stock market at all-time highs in the middle of a pandemic and a recession does not sound like an appetizing proposition.”
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