Bitcoin (BTC) starts another week aiming for $19,500 and beyond as crunch time for Brexit meets mass U.S. money printing.
Cointelegraph takes a look at the price factors at stake for Bitcoin this week as shaky $19,000 support remains in play.
$7 trillion money printing?
The more controversial elements of U.S. President-elect Joe Biden’s future tenure are already becoming clearer — and it’s good news for Bitcoin.
As his inauguration edges closer, Biden has already said that he plans a $7 trillion recovery package to tackle the impact of coronavirus. This would add a huge new chunk of debt to the already huge mountain that the U.S. has accrued this year.
Against the backdrop of an already weakening dollar, the U.S. could thus face a potent cocktail of dangerous economic factors driving down wealth. The appeal of a safe haven has thus never been so real.
“We had a horrible time in 2008 because of too much debt, and since 2008, the debt everywhere has skyrocketed. We can’t even count how much the debt is up,” Jim Rogers, co-founder of the Quantum Fund with George Soros, said at an investment summit last week quoted by Reuters.
“If Janet Yellen is the next Secretary of the Treasury, she loves to print and spend money.”
As Cointelegraph reported, the strength of the dollar is predicted to fall further in 2021, something that has traditionally buoyed Bitcoin. The greenback is already at its weakest against a basket of trading partner currencies since April 2018.
As an indication of the direction the U.S. is headed, meanwhile, Preston Pysh noted the opposing direction of U.S. debt versus M2 money velocity.
“Check out the disparity on these two charts -just in 2020 alone,” he mentioned to Twitter followers.
“A growth in M2 money supply by +22.5%. Velocity of money DOWN by -20%. Printing is nesting itself into bonds and stocks. It’s causing massive destruction of the middle class. You might want to checkout Bitcoin.”
Stimulus coming but without checks
New debt may come a lot sooner than even Biden can summon. As Senators began hinting on Sunday, a new coronavirus stimulus package could appear as soon as Monday.
Subject to voting, the bill would come with a price tag of almost $1 trillion and provide “targeted relief,” Democratic Senator Mark Warner of Virginia told CNN.
“I think we have got the top line numbers done. We are working right now on language so that we can have — as early as tomorrow — a piece of legislation,” he claimed.
The new stimulus bill has seen little progress despite promises from Treasury Secretary Steven Mnuchin months before. A second stimulus check of $1,200 for eligible Americans, however, no longer features in the latest proposals.
The first $1,200 stimulus check from mid April…
Read More: 5 things to watch in Bitcoin this week