Second US Stimulus Package of $1,200 on the Way as Bitcoin Bulls Gain Momentum
A second stimulus check is on the way for American citizens, according to the White House's economic advisor, Larry Kudlow. He confirmed this position during an interview with CNN’s Jake Tapper on July 26, signaling that the Fed’s printers might soon be busy again. This news coincides with strong crypto market bulls that have since pushed Bitcoin past $10,360 as of press time.
Earlier, BEG reported that the first stimulus round might have helped Bitcoin recover from black Thursday, given that quite a large number of Americans invested in Bitcoin. Could this new stimulus round push BTC further? A lot is clearly in play, but an injection by the Fed will likely result in a BTC rally, just like other markets have started to recover.
The European Union also recently announced plans to initiate a second Euro stimulus, aiming to distribute close to 1 billion Euros. While a direct correlation has yet to be linked to Bitcoin’s price surge following the announcement last week, speculators see the move by the EU may have contributed to Bitcoin’s price movement. The leading crypto asset had been stable for quite a while, ranging between $9k and $9.3k, but this resistance has since been broken over the past week.
Bitcoin Investors Gained over 40% ROI Since April.
With most of the stimulus payment processes clearing in April, investors who got into the market at the time are now over 45% in profit.
As the March economic downturn took a heavy toll on all sectors, the price of BTC dipped to lows below $4,000, but then eventually climbed back to almost $7,000 at the beginning of April. Looking at these stats, Americans who opted to buy Bitcoin with their stimulus money can cash out with around 40% gains depending on at which point they bought into the market.
Though considered volatile, digital assets such as Bitcoin are proving to be lucrative as fundamentals make inroads to the retail space. No wonder applications like Jack Dorsey’s Cash App are fast catching up with this trend.
The platform recently moved to allows Bitcoin purchases, including an automatic feature for such executions to grow revenue through Bitcoin’s demand. It is quite noteworthy that most of Cash App’s Q1 revenue this year came from Bitcoin purchases, a trend that might replicate itself in an even bigger way should more Americans decide to spend their stimulus on Bitcoin.