Emission of US dollars guarantees continued growth of bitcoin

The other day, the Bitcoin (BTC) rate rose to a new all-time high of $24,157 (Coinmarketcap), and anothera factor that will support the rise of the main cryptocurrency.

The US Congress has approved a bill that plans a second round of direct payments in the amount of $600.The total amount of the stimulus program to combat the consequences of the coronavirus will be $ 900 billion.

If in March US residents received $ 1200 each, thennow we are talking about a much more modest amount of $ 600. Nevertheless, the volume of the proposed infusions exceeded the plan to stimulate the exit from the financial crisis of 2009 in the amount of $ 787 billion.

Now a lot will depend on whether the bill will be able to successfully pass the vote, and how much the US dollar will suffer as a result.

«Brr, another trillion dollars that will be printed by the Federal Republic,– summed up popular Twitter user James Todaro, who speaks out on the topic of Bitcoin and coronavirus.Bitcoin was created for this exact reason during the 2008 financial crisis. Is anyone surprised that Bitcoin is setting new all-time highs?

Meanwhile, analyst Mikael van de Poppe has sounded the alarm about the long-term impact of the increase in US debt due to the stimulus bill:

«The agreement on the $900 billion coronavirus relief bill is another step towards a weaker US dollar.

This seal will not end well, just like before. These are attempts to prolong the agony of our failing financial system. Study and buy Bitcoin».

It is curious that, despite the approachingthe feeling of an imminent price correction, data from the blockchain monitoring service CryptoQuant show that last week the outflow of BTC from cryptocurrency exchanges continued, and coins were moved to private vaults.

On Monday, the total balance on the exchanges reacheda low since mid-2018, indicating that, unlike the previous all-time high in 2017, the $ 24,000 BTC is not the result of speculative trading frenzy.

CryptoQuant CEO Ki Yong Joobelieves that the increase in the outflow of BTC from the Coinbase Pro exchange is due to large institutional purchases using over-the-counter (OTC) transactions. If this state of affairs continues, Bitcoin's bull run will not face major obstacles.

Takeaway: BTC's bullish rally will never stop as long as OTC indicators keep talking about institutional buying.

</p>

5
/
5
(
1

voice
)