- US President Joe Biden’s administration looks forward to accelerating the coronavirus relief plan with a third round of incentives worth $ 1,400 for each US citizen. If the proposed plan is implemented, a $ 1.9 trillion in aid will be delivered beyond previous incentive schemes currently in use. While these aids are in line with the need to revive the economy, some reports suggest they are delaying the eventual Bitcoin boom.
Will it negatively affect the bitcoin price?
According to the Financial Times, a number of central bank incentives currently support Bitcoin’s rally and accelerate its growth.
Michael Bollinger, UBS Wealth Administration Chief Financial Officer, believes the current “BTC bubble can inflate longer than expected,” taking into account the history of the spikes.
Negative terms are used for BTC
From the perspective above, it can be concluded that a loan is currently being taken with Bitcoin from such a perspective. What is intriguing and interesting is that the digital asset continues to be called the “bubble” by some. Rather than defining its true value for the cryptocurrency, terminologies such as “speculative” are regularly used.
There is definitely a rationale behind the effect of quantitative loosening on Bitcoin, but this can be interpreted differently.
A recent Ecoinometrics report observed more liquidity in the current financial system. This is true, but it does not mean that such a situation only benefits Bitcoin. Other investment opportunities are gaining momentum, but the popularity surrounding Bitcoin is seen as contagious to its fans and worrying to its skeptics.
Adoption is increasing
The bottom line of the current market is that the Fed is constantly printing money. This led to a reduction in the purchasing power of fiat money, which is why everyone is looking at alternative investment windows. Bitcoin has recorded strong returns since last year, so more and more people are interested in BTC.
Additionally, Bitcoin is currently exploring the effects of S-curve adoption and exponential growth is expected in the future.
Before the boom cycle in 2017, most of Bitcoin’s supporters were tech developers, anarchists, and libertarians. Now with rising corporate interest in the market, the asset class is becoming more retail.