The Bitcoin (BTC) price has reached over $51,000 on March 7 (Sunday) after the US Senate passed the anticipated $1.9-trillion stimulus bill, which is around two times larger than the market capitalization of BTC.
It has been reported that Joe Biden, the US President, said that the Senate’s approval shows major progress in delivering a “desperately needed” stimulus bill to Americans.
He said:
“Today I can say we’ve taken one more giant step forward in delivering on that promise, that help is on the way. It wasn’t always pretty, but it was so desperately needed, urgently needed.”
However, in April 2020, when the first stimulus bill was passed, it coincided with a massive bull run in both the US equities market and the cryptocurrency market. Investors anticipate the second stimulus package to have a similar effect on the price of Bitcoin in the short term.
The report said that Peter Brandt, a long-time trader, said that the devaluation of the purchasing power of the US dollar has only started. The combination of a devaluing dollar and the new stimulus package would likely cause the market sentiment around Bitcoin to improve.
Brandt wrote:
“The devaluation of the purchasing power of the U.S. Dollar $DX_F has only just begun. This is why Bitcoin $BTC, real estate, U.S. equities and commodities will continue to trend higher when expressed in $USD fiat terms.”
Likewise, Meitu, a Chinese company, has officially bought $40 million worth of Bitcoin and Ethereum.
Fuel for a bigger BTC rally? Bitcoin price surpasses $50K as the U.S. Senate passes $1.9 trillion stimulus https://t.co/jCDHJ37Q6Q — Cointelegraph (@Cointelegraph) March 7, 2021
The company stated:
“The Group has purchased 15,000 units of Ether and 379.1214267 units of Bitcoin (BTC), both cryptocurrencies, in open market transactions at an aggregate consideration of approximately US$22.1 million and US$17.9 million respectively, on March 5, 2021.”
A popular Chinese journalist by the name of Wu Blockchain commented:
“The first Chinese listed company to buy a large amount of Bitcoin appeared. Photo-retouching software company Meitu announced that it would buy Bitcoin and Ethereum for 40mln$. But its founder was criticized for issuing multiple ICOs in 2017.”
Thus, he added:
“Meitu said that crypto has enough room for appreciation, it can diversify the risk of holding cash in fund management. Affected by this, there may be more Chinese companies buying Bitcoin to boost their stock prices, but they may also be banned by the Chinese government.”
Source: Cointelegraph | Image: Freepik | Technology Review | The Conversation