The second U.S Stimulus from the government of the United States could start another major rally for bitcoin as President Donald Trump said Americans can expect a huge stimulus check soon. Some of the money already went into crypto which is why it could start another massive Bitcoin rally so let’s read more about it in the Bitcoin latest news today.
With the second U.S stimulus, Bitcoin is consolidating below its resistance and it could start a sizeable breakout. The start of 2020 was quite hard for the United States as it only renewed the trade tensions with China and Iran. The outbreak of the COVID-19 virus set an unprecedented quarantine all across the world which resulted in a crashing economy. Many people that lost their jobs overnight and their jobless claims skyrocketed which is why the market crashed under the heavyweights of fear and uncertainty.
Bitcoin and most of the crypto market got dragged down with S&P500, Dow, and other major US stock indices. It was clear that the economy is in trouble and will be for quite some time. However, in an effort to save the markets from crashing further, the Federal Reserve launched its stimulus money. Checks were issued to taxpayers at $1200 per person and other relief efforts were offered to small businesses as well. More assistance with the pandemic will be needed for people that lost their jobs. Some of the free cash made its way back in Bitcoin which helped to fuel the stages of recovery which are going on today.
The CEO of Coinbase, Brian Armstrong, saw a huge increase in BTC purchases on the platform with an amount of $1200 after the issuance of the first stimulus check. The data suggests that the BTC checks were not impacted by the pandemic and that money flowed into the market was to cover the bills or essentials such as groceries. Another stimulus check could have the same impact. As bitcoin is fighting against its resistance, a huge boost from the stimulus money could help the asset to break out of its trend.
Legislators say that the stimulus package will not be settled until July which could push actual stimulus money from really reaching the American individuals until late August or September. More time will be needed before the stimulus checks arrive and push the price of Bitcoin.
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