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Bitcoin Nears $11.5K on US Stimulus Prospects, Seems to Confirm Bullish Trend
Optimism for the prospects for a U.S. stimulus package rose after the White House boosted its offer to Democrats on a pandemic relief package Friday.
Bitcoin's (BTC) uptrend gathered pace on Saturday with prices nearly testing $11,500 for the first time in over a month.
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- The biggest cryptocurrency by market value rose to $11,484 at 03:10 UTC – the highest level since Sept. 2, according to CoinDesk's Bitcoin Price Index.
- Likely driving the move was optimism for the prospects for a U.S. stimulus package after the White House boosted its offer to Democrats on a pandemic relief package to the north of $1.8 trillion Friday.
A new round of stimulus would likely benefit BTC in at least three ways:
- Government and central bank spending around the world in response to the coronavirus-induced slowdown, in the eyes of many, will inevitably result in inflation, and therefore be positive for the cryptocurrency.
- Given the current correlation between equities and BTC, and that some investors treat BTC like it's a tech stock, anything that boosts equities invariably boosts BTC.
- Stimulus paychecks would give individual investors money to invest, and some of those investments would likely be BTC.
Buyers stepped in around $10,500 earlier this week after payments company Square announced it had put some 1% of its assets into bitcoin.
At press time, bitcoin is changing hands near $11,320, representing a 2% gain on the day.
Also read: Market Wrap: Bitcoin Tops $11.1K; Ether Traders Like $400 Options
Kevin Reynolds
Kevin Reynolds was the editor-in-chief at CoinDesk. Prior to joining the company in mid-2020, Reynolds spent 23 years at Bloomberg, where he won two CEO awards for moving the needle for the entire company and established himself as one of the world's leading experts in real-time financial news. In addition to having done almost every job in the newsroom, Reynolds built, scaled and ran products for every asset class, including First Word, a 250-person global news/analysis service for professional clients, as well as Bloomberg's Speed Desk and the training program that all Bloomberg News hires worldwide are required to take. He also turned around several other operations, including the company's flash headlines desk and was instrumental in the turnaround of Bloomberg's BGOV unit. He shares a patent for a content management system he helped design, is a Certified Scrum Master, and a veteran of the U.S. Marine Corps. He owns bitcoin, ether, polygon and solana.
Omkar Godbole
Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
