Cryptocurrency

Why is the second US stimulus package could trigger the next Bitcoin rally Coin Update

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This week’s US President, Donald Trump declared to the media that the Americans can expect a “generous” second stimulus check. As with the first round of cheques to be a part of this money is flowing into crypto could trigger a short-term Bitcoin rally.

And as the Stimulus comes may, while Bitcoin is consolidating below the resistance, it could lead to a significant outbreak.

Funding for food, bills and crypto purchases

The beginning of the year 2020 for the United States hard, there was a renewed trade tensions with China, a short-lived conflict with Iran.

Months later, a pandemic hits the United States and the Rest of the world. The eruption caused an unprecedented mass quarantine, which led to a standstill of the economy.

The unemployment figures reached overnight astronomical highs, and the stock market crashed under the burden of uncertainty and fear.

Bitcoin and the other crypto-market were drawn with the S&P 500, the Dow and other major US stock indices down.

It was clear that the economy is in trouble and that is you still. But in an effort to keep the markets from a further crash, the Federal Reserve’s stimulus funds.

Cheques in the amount of $ 1,200 per Person have been issued to taxpayers. Further aid measures were for small businesses and corporations. More pandemic-assistance was provided for those who had lost their jobs.

A portion of this money found its way back to Bitcoin and crypto, and contributed to the early stages of the recovery drive that continues to this day.

BraveNewCoin Bitcoin Liquid Index | Source: Tradingview.com

Second Stimulus round can push Bitcoin, however, only in the autumn

Coinbase CEO Brian Armstrong spoke of a dramatic increase in BTC purchases on the platform after the exhibition of Stimulus-checks – in the amount of exactly $ 1,200.

The data suggest that those who were not directly affected by the pandemic, have invested the money in Bitcoin. May be the money that’s gone into the crypto market to cover instead of bills or vital goods like food.

A further round of Stimulus Checks could have a similar effect.

The Congress discussed the inclusion of parameters for the next issue of stimulus, to prevent them from going into the Surplus, and to transmit them to those who need it.

As Bitcoin is encountering resistance, could help to increase the funding to the asset, from its downward trend to break out.

According to the government, the stimulus package will be completed, however, until the end of July. This could lead to the actual stimulus funds did not arrive until the end of August or beginning of September, the American citizens.

Politicians will your two-week holiday at the 4. July work around. In the meantime, the celebrations have been sentenced to independence day in the largest part of the country due to the Social Distancings.

More time may be needed until the economic recovery arrives programs and Bitcoin have an impact. But if you are there and have the same effect as before, this could help the next upward trend of Bitcoin trigger.

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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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