Bitcoin (BTC) soared to over $51,000 Sunday morning after the U.S. Senate passed the long-awaited $1.9 stimulus bill. Pres. Joe Biden said that the approval is an important step to
“Today I can say we’ve taken one more giant step forward in delivering on that promise. Help is on the way. It wasn’t always pretty, but it was so desperately needed. Urgently needed.” Pres. Joe Biden said.
The effect of a stimulus bill on Bitcoin is similar to that of cyclical stocks when conditions are back to normal. In other words, when the U.S. Senate passes a stimulus bill, the financial conditions get more stable; consequently, it leads to price increases of the digital currencies. For instance, in April 2020, the 1st stimulus bill was passed leading to a bull run in both U.S. stocks and cryptocurrencies.
Peter Brandt, an experienced trader, discussed decreased purchasing power of the U.S. dollar as only the beginning. He argued that a devaluing dollar plus the new stimulus check will drive Bitcoin to go on another rally again.