BTC Millionaires Record a Steep Jump; Treasury Secretary Calls Out for a ‘Big Package’ & ‘Quickly’
There’s “no reason why we should suffer a long, slow recovery,” says Janet Yellen’ on more and urgent stimulus, which would only push the prices of assets higher.
Last week started on a green note but ended on a red note only to start moving upwards this week yet again.
Ahead of the CME launch of Ether futures, the price of ETH was dumped to just under $1,500 from its ATH of $1,765 on Friday, last week. Bitcoin had also made its way past $41,000, near a $42k peak, on Saturday only to drop back under $38,000.
As of writing, the news of Tesla buying $1.5 Billion in Bitcoin has sent the price vertical. Pushing BTC to a new all-time high of over $44,250, an increase of over 15% in the last 24 hours.
Trader @SmartContracter expects the price of Bitcoin to make an all-time high this week, and as a result, the leading cryptocurrency's dominance to move back up to around 66%-68%. Last week, while Bitcoin crept up, altcoins and DeFi tokens exploded, which pushed BTC dominance down to 60.9%.
Up 32.85% YTD, the jumps in Bitcoin prices from 2017 ATH of $20,000 on Dec. 16 to a new ATH at $42,000 on Jan. 8 has increased the Bitcoin millionaire addresses to about 83,000. Rafael Schultze-Kraft, co-founder and CTO of data provider Glassnode noted,
“All the early addresses that mined 50 BTC before the first halving, and never spent (or lost them), made the jump into the millionaire addresses bucket at $20k.”
In the macro environment, meanwhile, the dollar, which weakened over the weekend over disappointing jobs data is showing steadiness. Speculators have also been reducing their record short positions in the USD net bearish bets on the dollar fell to $29.95 billion for the week ended Feb. 2 compared to a net short position of $33.81 billion for the previous week, but continued economic progress is needed for further greenback gains. Yukio Ishizuki, a foreign exchange strategist at Daiwa Securities, said,
“Now the markets are questioning whether the dollar can rise any further. A lot depends on the coronavirus, but we also need to know when U.S. fiscal stimulus will pass.”
President Joe Biden is pushing ahead, with a $1.9 trillion Covid-19 relief package with House of Representatives Speaker Nancy Pelosi predicting that the final relief legislation could pass Congress before March 15.
According to Treasury Secretary Janet Yellen, a robust enough coronavirus stimulus package can return the US to fill employment in 2022. She also said that those Americans earning $60k per year should also receive stimulus cheques as part of the relief package.
“We need a big package, and we need to get this done quickly,” Yellen said Sunday on CNN’s “State of the Union.”
Without adequate support, she said, it could take until 2025 for the US labor market to recover and there’s “no reason why we should suffer a long, slow recovery,” she added.