The U.S. Senate passed a $1.9 trillion Covid-19 relief package on Saturday. The Democratic-held House is rushing to pass the bill on Tuesday 9th March and send it to President Joe Biden for signing before the 14th March deadline to renew the federal unemployment benefits program. The Democratic Party had to make several last-minute changes to make the majority of the House agree with them. And, with this bipartisanship support from the Senate and the House, we can expect the largest cryptocurrency Bitcoin to witness some significant bull run in the future.
$1.9 Trillion Package Will Bring BTC Into Spotlight
The Senate approved the plan in a 50-49 party-line vote. However, the Republicans questioned the need for another broad spending package. The package puts new funding into Covid-19 vaccine supply and testing, rental assistance for struggling households, and K-12 schools for reopening costs. Now, this seems perfectly sound if we talk about the pandemic take. However, the package is going to bring down the value of US dollars. Here’s why!!
The $1.9 trillion relief package will be required to print more US dollars in the market. This will also require an equal amount of assets to keep the value of the currency intact. Given that the equal amount of assets is not there in the market, the price of US dollars will go down. This is because the supply will be more than the demand.
This U.S. fiscal stimulus has sparked fears of dollar sell-offs. Therefore, investors will think that it is safe to invest their money in some other asset. This is when Bitcoin comes under the spotlight. People will shift more and more to the world of crypto for better investment and Bitcoin’s being the first choice for most of them to push Bitcoin’s momentum further upwards.
Bitcoin Under Joe Biden’s Administration
As soon as Joe Biden came into power as the 46th President of the United States, he froze all the new or pending rules in the Trump-era, including the Bank Secrecy Act. The proposed rule required banks and money services organizations to submit reports and verify the identity of customers engaging in private cryptocurrency wallets. This was a clear indication that the crypto industry is going to witness fresh and more clear regulations under Biden’s era.
Many of Biden’s nominations for the head of important U.S. institutions including the Comptroller of the Currency, the U.S. Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC) had people who either support or have knowledge of cryptocurrencies.
Democrat Joe Biden’s victory and the very nature of his list of agendas for America’s future, tax hikes, and increased regulations won’t be avoidable. His leadership will put significant stress on the economy and possibly increasing positive inclination towards the crypto market, especially Bitcoin. A Bloomberg newsletter mentioned,
“A potential Joe Biden presidency should shine favor on further appreciation in the price of Bitcoin, in our view. New leadership may change the hands-off policy of the Trump administration — to the detriment of the broader crypto market — and nudge the firstborn benchmark toward the mainstream, improving chances for an ETF.”