Bitcoin has in the last 24 hours broken out of a three-day bear trend. The move sees the digital asset climb above $8,900 as it grips $9K. Most analysts are keen on the $9,500 position. As investors continue to look up to the most sought position, $10,000, analysts are aware that the $9,500 resistance will be critical to the midterm outlook.
Investors expected that the Bitcoin halving would offer a positive momentum to get Bitcoin above $10,000. But to everyone’s disappointment, this was not the case. With the event taking headlines for the last few weeks, some investors have been left in the dark on what is the next bullish trigger.
These investors can now turn to governments’ response to COVID-19. More specifically the U.S gov’t which has continued to promise to get more cash in the economy.
In the last 24 hours, and coincidentally as Bitcoin began climbing higher, President Trump has threatened to introduce negative interest rates. He has made clear that as long as other countries are doing it, then the U.S should too.
This will see the government print and flood the market with more dollars making it the “GIFT” of hyperinflation. If Trump follows through with this, as he has done with most other responses, this could add to the growing credibility of Bitcoin.
Democrats Want Another $3 Trillion Printed
When it comes to printing more money, this is one of the few things that Trump and Democrats can agree on. Although the two have taken different approaches, it is clear the goal is to get more dollars in the economy. According to mainstream media, House Democrats have planned a vote for Friday on their proposed $3 trillion pandemic relief. This would be an addition to the first four stimulus packages that racked up to a total of $6 Trillion.
The Democrats are faced with resistance from the Republicans and the White House which has indicated that it doesn’t intend any further federal spending at the moment. The Republican’s stance is however just political having in the past indicated they are willing to print as much money as needed to keep the U.S economy going.
Bitcoin’s legitimacy as the only sound money continues to grow. It has also come out as the best safe haven in this troubled time. It is just a matter of time before it attracts mass adoption and reaches the moon.
