The news of the new stimulus package proposed by the United States government was the most important of the week in world financial markets. And, this package will inject a total of 1.9 trillion dollars into the US economy. What is expected to have important consequences in the cryptocurrency market, increasing the liquidity available for the purchase of financial products. Well, as the crypto influencer Anthony Pompliano points out in the Tweet of the day, the new US stimulus is greater than the Bitcoin market:
The US stimulus and Bitcoin
The economic crisis generated by COVID-19 continues to affect all countries in the world. Forcing governments like the United States to invest billions of dollars in stimulus plans, to avoid the most harmful effects of the crisis. Which not only means a relief for American citizens and companies, but a boost for the financial markets.
And it is that, by issuing millions of dollars to avoid a greater fall in its economy. The United States is letting a new tide of liquidity enter the financial market. Since the main beneficiaries of stimulus packages are always the financial institutions through which these funds are managed. And that they can use them to make investments in the stock market.
A situation that has not only driven a significant increase in the stock market. But also in the cryptocurrency market, with much of the funds from the stimulus packages buying cryptocurrencies such as Bitcoin. A trend that, after the Biden administration’s stimulus package is announced, may end up making the crypto market grow even more. What Anthony Pompliano mentions on his Twitter account:
«Stimulus bill: $ 1.9 trillion. Bitcoin market: $ 1 trillion. They created more dollars out of thin air than the total market value of Bitcoins. It is still early».
Thus, the potential impact that this new stimulus may have on the Bitcoin market is clear. Even exceeding its total capitalization, and opening the doors for citizens and companies to use this excess liquidity to buy BTC. Which, of course, would end up driving the price of the cryptocurrency.