The whole world, including the Bitcoin industry, has been searched in recent weeks by the outbreak of the Coronavirus home. The spread of COVID-curb 19, thousands of businesses closed and millions of people around the world released. In short: The economic impact were, and are, enormous.
It is therefore not surprising that the governments had to respond. Canada announced an economic stimulus package in the amount of 82 billion CAD, the European Central Bank stepped up its large-scale operations for the acquisition of assets, and Hong Kong, promises to send to its citizens each HK$ 10,000.
Also, the US in this regard, Gas. And a good time.
Like at a press conference on 24. March announced, estimates of the economic adviser to the White house, Larry Kudlow, that the stimulus package of the U.S. government “would amount to about 6 trillion dollars”.
According to reports, 2 trillion dollars of this sum is to be (if approved) direct cash payments to companies and individuals who are suffering from the Coronavirus outbreak, the remaining 4 trillion dollars are destined for the Federal Reserve.
To put the staggering sum of 6 trillion dollars in context, I shared the below message. 6 trillion dollars, equivalent to one third of the entire American GDP, 130% of the balance sheet of the Federal Reserve, enough money to give every person on the earth 850 dollars – or enough money to buy 900 million in Bitcoin at current prices (if 900 million BTC would exist).
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Bullish for Bitcoin
Although none of these incentives directly targeting Bitcoin, analysts believe that this money will increase the value of Bitcoin and other crypto-currencies dramatically.
Preston Pysh, for example, a prominent market analyst and Podcaster, commented in a Podcast with Bitcoin duration of COP Anthony Pompliano, the importance of this financial support for Bitcoin.
The cheques will soon be issued to American households, says Pysh, that there are many Millennials (and presumably also those in other demographic areas), who are willing to use a fair proportion of these cheques for Bitcoin.
In addition, analysts believe that this impulse could be the trigger for a major surge of Inflation, similar to the one observed after the abolition of the gold standard.
BitMEX Research wrote in a recent report that, due to the influx of monetary and fiscal policy incentives, the chances for a dramatic appreciation of Bitcoin are high:
“In our view, this could not be in this changing economic system, the economy and the financial markets are left free, without any significant anchor that even with an inflation target, the biggest opportunity that Bitcoin has seen in his short life time.”
Bitcoin, currently at # 1 on the market capitalisation, has fallen in the last 24 hours of 1.89%. BTC has a market capitalization of 119,86 billion USD in a 24-hours-a volume of 46,23 billion USD