It is now certain that Joe Biden will become the new US president. When, according to the plans of the Democrats, it pumps another stimulus into the economy to stimulate the markets, Bitcoin can become significantly more expensive.
The plan of the future Biden administration to directly flood the US economy with trillions of dollars could ignite the next stage of the Bitcoin (BTC) boom. More and more investors are looking for a safe haven from the effects of such a policy – high inflation.
Arlington-based news service Axios said on Thursday that Biden had asked Congress to pay Americans $ 2,000 in stimulus checks. This is to help overcome the negative effects of the fight against the COVID-19 pandemic. The new president also proposed creating an infrastructure package as part of his “Build Back Better” program.
The matter is in a sense urgent, because after analyzing the Friday’s employment report, we know that in December alone, the US market saw the loss of as many as 140,000 jobs.
– Economic research confirms that in conditions like today’s crisis, especially with such low interest rates, taking immediate action – even when financing the deficit – will help the economy – says Biden.
The new wave of stimulus could be another catalyst for Bitcoin as more money will flood the markets and drive digital asset prices.
Only reprinting can save us?
Interestingly, even Republican Donald Trump shares Biden’s view. Under his rule, Americans were sent $ 1,200 and $ 500 for each child. Not only that, although his party now only wants to give citizens $ 600 each, the outgoing president says it is not enough and that the amount should be raised to $ 2,000, which is as much as the Democrats suggest.
The federal government’s inflationary policy coincided with a record intervention by the Federal Reserve, which allocated trillions of dollars in 2020 to combat the liquidity crisis.
While these actions may have helped the poorest, they will ultimately deal a blow to middle-class people and those with savings. Due to inflation, the latter will start to lose their value, so it can be expected that Americans will start buying assets that are characterized by a limited supply – gold and e.g. Bitcoin.