Now that a $2 trillion economic stimulus package is on the verge of being approved by the Senate, many analysts and crypto enthusiasts everywhere believe the demand for bitcoin is going to go through the roof, which means now may be the time to buy… Before things get too expensive.
Bitcoin Is About to Get Very Big
Larry Kudlow – the chief economic advisor to President Donald Trump – called the plan the largest assistance the United States has ever seen, and further claimed:
This legislation is urgently needed to bolster the economy, provide cash injections and liquidity and stabilize financial markets to get us through a difficult and challenging period in the economy facing us right now.
Crypto fans everywhere are taking the news to heart, and believe it’s going to stir the crypto space up in ways nobody could have ever anticipated. Mike Novogratz – the chief executive of bitcoin hedge fund Galaxy Digital – explained in an interview:
If there was ever a time – debasement of fiat currencies, monetization of trillions of dollars of debt, this is the time for bitcoin. If at the end of the year bitcoin’s not a lot higher, I’m going to scratch my head and say, ‘Look, what the heck is going on?’
At the time of writing, bitcoin – the world’s number one cryptocurrency by market cap – is trading for just shy of $6,700 and hasn’t shown much change in its price or stature over the past 24 hours despite incoming news of the bill. Many have wondered why the currency’s price has been relatively slow to change, though men like Changpeng Zhao – the CEO of Binance, arguably the largest and most popular cryptocurrency exchange in the world – were quick to offer explanations.
In a blog post, he writes:
These changes take time to propagate in the economy. Changes don’t happen immediately when a mass population is involved. There are other more practical aspects of speed. Due to inefficiencies in fiat transfers, it takes time for people to deposit money into crypto exchanges to buy bitcoin. There is always a delay in the market.
For some, the trillion-dollar stimulus package is coming too late and isn’t likely to curb the effects of the coronavirus which has led to outspread fear and panic. It was this panic that caused the U.S. economy to tank, which ultimately led to the general need for such a bill.
Is It Too Late?
Brian Kloss – manager of the Legg Mason Brandywine Global Income Optimizer fund – expressed his skepticism by claiming:
This pandemic has already caused a huge shock to demand, and if you combine that with what will undoubtedly be some horrific data over the next few months, then the spending bill probably still won’t be enough.