The crypto industry is looking alive again as bitcoin and several other coins surged on the news that Congress is close to reaching an economic stimulus package deal.
Bitcoin Is Firing on All Cylinders
At the time of writing, bitcoin has shot beyond the $6,600 mark – roughly $400 higher than where it stood yesterday, while all the top ten currencies in the crypto arena have shot up by anywhere between three and seven percent.
Congress has been pushing a $1 trillion economic stimulus package that is meant to dole out individual payments to citizens, small businesses and corporations alike. Adults of families are set to attain $1,000 each, while also garnering $500 for each child. Those without children will simply receive $1,000.
Sadly, the bill stalled heavily during yesterday’s early morning hours, with Senate Majority Leader Mitch McConnell blasting Democrats for not pushing the vote harder and attempting to fix the bill to cover several non-coronavirus related issues on their personal agendas, such as wind and solar tax credits. He commented that those not voting for the bill were playing with Americans’ emotions and time.
Now, however, it is believed that the bill could be reached in as early as one day. Following this news, the stock market also surged heavily, with the Dow gaining as much as 1,700 points by mid-morning and once again moving beyond the 20,000 mark. The S&P 500 and the NASDAQ have also shown signs of life.
Bitcoin has arguably taken one of its most serious hits this month. Last February, the currency was trading as high as $10,350, but at its lowest point, the world’s number one cryptocurrency by market cap was selling in the high $3,000 range, meaning it had lost nearly three-quarters of its 2020 value. Even now, while the currency has added about $3,000 to its price, there’s still plenty of room for improvement.
Bitcoin’s status as a “safe haven” asset was also questioned by many, who claimed that the currency had failed to retain its momentum during times of strife. Assets like gold, however, also experienced drops, so perhaps BTC did better than we all thought.
Feeling Better About Everything
Overall, the total cryptocurrency market cap at press time is more than $180 billion, and analysts are once again feeling bullish about the future. Vijay Ayyar – head of business development at crypto trading exchange Luno – mentioned in a statement:
We’re seeing some really bullish bitcoin price action today along with other asset classes after the Fed announced unprecedented measures yesterday to shore up the economy. This has given a lot of confidence to investors. It will be interesting to see how bitcoin fares in such an environment, given this is its first test as a safe-haven asset in a market downturn and is yet to be proven.