Tether’s Exchange Supply & $900 Billion US Stimulus Deal Offers Fuel to Bitcoin Bulls
After the monster weekly candle last week while being on track to beat 2Q17 to become the second-best quarter after 4Q17, today the market is in red but the bulls might not back down yet.
Last week was a wild one for Bitcoin.
The digital asset capped one of the biggest weeks with a monster candle that pushed us from about $18,950 to above $24,000.
There have been only a handful of times when Bitcoin BTC -5.84% Bitcoin / USD BTCUSD $ 49,084.64
-$2,866.54-5.84% Volume 61.56 b Change -$2,866.54 Open $49,084.64 Circulating 18.89 m Market Cap 927.28 b 13 h Bitcoin A Smart Hedge For Investors, says Chairman of $100 Billion Starwood Capital Group 14 h Bitcoin Miners HODLing: Marathon Mines 53% Less BTC in Nov., Hut 8 Producing Each BTC at A Cost of $3k 14 h Crypto Market Tanks: Bitcoin Correlation with S&P 500 Reaches 2021 High & USD Longs at Highest Level since June 2019 recorded more gains than what we posted last week.
This quarter, which is still 10 days from its end, has recorded the third-largest quarterly gains of 121% beaten by 125.32% in Q2 of 2017 and of course the 10.13% gains in Q4 of the same year, as per crypto data provider Skew.
— Crypto₿ull (@CryptoBull) December 21, 2020
The world’s largest cryptocurrency made yet another new high early Monday, as it jumped past $24,300 following Tesla CEO Elon Musk’s Bitcoin meme and inquiry about “larger transactions” required to convert $100 billion of USD in Tesla’s balance sheet to BTC.
According to Hxro Labs, “With a break of 24k, it looks like the next such cluster of objectives lay in wait up around the $26,750-$26,650 area.”
But the weakness in the price of the digital asset seen last night and today has some feeling a bit cautious.
And, today the price of the Bitcoin went down to about $21,885 level and is currently trading around $22,800 in red.
— Jonny Moe (@JonnyMoeTrades) December 20, 2020
Interestingly, amidst the ongoing bullish price action, the number of Bitcoin holders with 1,000 or more BTC continues its upward momentum. Unlike these multi-millionaires, addresses with under 1,000 BTC have been selling off their stash since Wednesday, the day BTC price breached the all-time high of $20k only to continue to break past several levels.
Meanwhile, the bullish sign for the Bitcoin bulls is the percentage of Tether supply on cryptocurrency exchange hitting a 4-month low on the weekend, as per Santiment.
At the same time, Congress reached a deal on the $900 billion coronavirus relief package. Congressional leaders announced the agreement on the bill on Sunday which will fund the government through Sept. 30.
“At long last, we have the bipartisan breakthrough the country has needed,” Senate Majority Leader Mitch McConnell, R-Ky., said on the Senate floor Sunday.
However, House Speaker Nancy Pelosi called the plan inadequate and that they would soon push for more spending after President-elect Joe Biden takes office a month later, on Jan. 20.
This relief plan includes direct payments of $600 to adults and $600 per child. These payments could make their way to Bitcoin, like the last time. The $1,200 check from last time is currently worth about $4,000 in Bitcoin.
— jack (@jack) December 21, 2020
The Democrats said it would put $240 billion into Paycheck Protection Program small business loans, and direct another $20 billion to small business grants and $15 billion to live event venues.
With all the money printing going on at “unprecedented levels,” Bitcoin price could see more action. According to Mike Belshe, the CEO of California-based cryptocurrency firm BitGo, BTC is “immune” to this money printing which is because the digital asset “got a level of scarcity that we really don't have in any other market,” not even in gold, he said.