As President Joe Biden signed the new $1.9 trillion stimulus package aimed at stabilising the pandemic that struck the US economy, the price of Bitcoin pushed past $57,000 on Thursday.
Cryptocurrency investors will likely be happy about the influx of money into the system. With the printing of more bills, the system is getting pumped with more money but the value of the dollar decreases. This places Bitcoin and other cryptocurrencies in a better position for purchase.
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The COVID relief bill is set to give $1400 stimulus cheques and $300 weekly jobless aid. An expected increase in monetary flow suggests a boost for Bitcoin.
Bitcoin prices surged to an all-time high in mid-February but subsequently tumbled down in the early days of March until the aid package was signed. It has risen by approximately 600% this year.
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Kraken, a US-based cryptocurrency exchange platform said in a statement, “Since March 13, 2020, the percentage of BTC’s supply on exchanges has done nothing but tumble lower and lower. Last March, we saw this percentage rise to a historic high of 16.7%, only to then tumble down to today’s three-year low of 13% amid what is currently an epic bull market rally. Given that a rise in on-exchange balances is often associated with market participants moving coins onto an exchange to cash out, the dwindling number of coins on exchanges suggests that market sentiment is still incredibly bullish,” reported Mint.