The price of Bitcoin has been edging higher and higher the last few days. Key resistances have been broken amid short lived pull backs. If formations set off as expected, we just might see a breakout beyond the $17,000 mark.
Possible stimulus package
Speculation is rife that a possible stimulus package to help mitigate against the ills of the COVID-19 pandemic could be causing the spike in BTC prices. The pandemic has been red hot since the start of the year and has slowed down in certain areas while staying consistent in others. The UK saw a slowdown back in July that informed the resumption of activities such as sports and schooling. Today the UK is bracing for another lockdown and so is the US.
An impending second wave is making the US and other financial leaders across the world think through their strategies. A polarizing US election has led to a new Biden administration that is keen to outdo the former in the handing of the disease. It is, therefore, expected that a new stimulus package is on the way as America braces for a possible second lockdown period.
In a post-election address, FED char Jerome Powell said that the economy needed more support in the way of a stimulus to brave through a harsh pandemic period. Even with joblessness in the US having dipped compared to a few months ago, a new stimulus has been deemed necessary to cushion people that have lost their livelihoods.
Buy Bitcoin hint
Some commentators have taken Powell’s hints of a stimulus as a warning against holding fiat money. Tyler Winklevoss, a popular crypto enthusiast and one half of the Winklevoss twins, recently tweeted that the FED chair’s words were code for buy Bitcoin. A possible stimulus and printing of more money will increase inflation, and such speculation drives investors towards save havens like Gold, and cryptocurrencies. Bitcoin by the looks could be driven by even more speculation and we could see 2017 like highs in the next few weeks.
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