U.S. President Joe Biden rejected the Republican COVID-19 aid bill that would end up with $ 618 billion going to U.S. households and troubled businesses.
Biden and Treasury Secretary Janet Yellen dismissed the sum – slightly below the size of Bitcoin’s entire market cap – as insufficient to stimulate the economy in the face of the ongoing pandemic, it said Reuters.
Democrats voted in the US Senate on Jan. 2, following party guidelines, to push through the “Biden Relief” bill. This would more than triple the Republican proposal to $ 1.9 trillion. Senate President Chuck Schumer told reporters that less value would leave the country in crisis for too long. Referring to the initial GOP ($ 618 billion) proposal, Schumer said:
“If we were to do such a small package, we would be bogged down in the COVID crisis for years.”
On the same day, the House of Partisan Representatives voted to renegotiate the Relief Act; The Democrats won 216-210, with no Republican pledging their support.
Joe Biden and the money printing machine
The Federal Reserve printed more money in 2020 than the country spent in the first two centuries of existence; total US debt at the time of writing is close to $ 28 trillion. This puts the debt-to-GDP ratio above 130%, which is the highest figure in the country’s history.
Some argue that the FED’s money-printing practices ultimately help Bitcoin, creating uncertainty and doubt about the US dollar. Co-founder of the Gemini cryptocurrency exchange, Tyler Winklevoss, previously expressed the view that the FED is essentially preparing Bitcoin for a price increase. And that’s every time he prints money.
However, even the bull market may not be as durable as it seems. The number of dollars created in 2020 was almost one-fifth of all dollars ever printed. This inflation effectively deprives Bitcoin and other related cryptocurrencies of their purchasing power. For decentralized currencies are still priced against the US dollar.
Biden’s bailout package proposal represents a significant cut from the initial $ 3 trillion he first suggested in early January. Whether or not such efforts to boost the economy will drive Bitcoin’s price up is largely a matter of speculation, but it’s worth noting that the coin’s value has risen 700% since the start of the COVID-19 pandemic.