Bitcoin Price
Bitcoin Rips Higher To $13,000 on Continued Fiscal Stimulus Excitement
Nick Chong | Oct 22, 2020 | 01:01
- Bitcoin has continued to explode higher over the past 24 hours.
- The coin now trades for $12,750, around 7% higher than it was just 24 hours ago.
- This latest leg higher in the Bitcoin price can be pinned to two fundamental news events: PayPal adding crypto and more fiscal stimulus coming.
Bitcoin Rallies Higher as Stimulus Talks Continue
Bitcoin has continued to explode higher over the past 24 hours.
The coin currently trades for $12,750, around 7% higher than it was just 24 hours ago. This has made it one of the best performing macro assets of the past day.
Not to mention, the coin is also seriously up over the past week, having bottomed at $11,200 last week on news of OKEx freezing withdrawals.
It appears that this latest leg higher can be pinned to two fundamental news events that should drive further capital into Bitcoin and other digital assets. These news events are:
- PayPal adding support for cryptocurrencies after hinting at this many months ago through leaked reports and hires. While you will not be able to withdraw the Bitcoin, Ethereum, or altcoins you buy on the platform, many see this as validation of this space. PayPal is also giving users the chance to purchase items with vendors with digital assets.
- The U.S. White House confirming that the next stimulus bill is likely going to arrive in the near future. Many see this as a validation of BTC’s scarcity, which should be accentuated when further capital is injected into the U.S. economy. The U.S. dollar is dropping in response to these discussions, which is also driving Bitcoin higher. Bitcoin is seen as a hedge against moves lower in the price of the U.S. dollar relative to other currencies.
Other Fundamental Trends Bullish
Other fundamental trends are favoring BTC bulls.
Raoul Pal, CEO of Real Vision and a former hedge fund manager, says that macroeconomic trends suggest that more monetary stimulus is coming:
“Talking of Bretton Woods, this IMF article alludes to a huge change coming but lacks real clarity outside of allowing much more fiscal stimulus via monetary mechanisms… Fiat globally will be worth less versus hard assets. And that means that gold and in particular #Bitcoin will become THE way to circumvent the system of ever lower value. It also create incentives systems for other nations to opt into a hard currency system to attract capital.”
Monetary and fiscal stimulus will drive Bitcoin higher as investors seek safe havens to hedge their wealth against inflation.
Featured image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Rips Higher Toward $13,000 on Continued Fiscal Stimulus Excitement
