It is anticipated that a different incentive plan may be prepared after the US Senate rejected the new stimulus proposal, which has been expected for some time. In line with this claim, “Will Bitcoin rise” questions started to be discussed in the backstage.
In America, aid packages to be undertaken by the government to comfort the people have been discussed for a while. In the Senate, where both Republicans and Democrats were located, there was an expectation of a large stimulus package in line with the increasing demand for additional aid. This demand, which was not met in the first round of negotiations, was rejected by the senate when presented for the second time. The 60 votes required for the bill to be passed could not be achieved in the senate and the incentive package was not accepted.
The declined package included additional assistance for small businesses and unemployment benefit of $ 300 per week. But as the Senate expected, the proposal did not include $ 300 billion in direct cash assistance, financial support to state and local governments, rent / mortgage assistance, and additional food support. The government did not include other expected items, fearing that they could undermine the dollar’s rise, and decided to keep the stimulus package “weak”.
A new aid plan is thought to be submitted after the Senate rejected this weak bill. Economists have started to press the US government to propose an aid package through which direct payments would be made, rather than providing direct cash aid.
What Does This Mean for Bitcoin?
If a package is presented to the senate again, as expected, it is thought that the senate will quickly approve this new incentive. Experts argue that the price of Bitcoin may rise within the scope of cash aid at the request of the senate. Because, according to experts, people prefer investment and savings methods instead of purchasing tendency with anxiety for the future. It is thought that the public, whose cryptocurrency habits have changed considerably with the pandemic, may tend to invest in BTC as a safe harbor as in April – August.
For these reasons, economists think that an incentive package that follows steps such as debt repayment will be more successful than direct cash assistance, both to prevent the dollar from rising and because of the inability to help people with hot money circulate.
Herpes Support Packages Have Been Effective In The Rise Of Bitcoin
One of the biggest reasons for Bitcoin’s rising rally in April – August was shown by the government’s extreme aid packages. With the rejection news from the Senate, it was also a matter of curiosity whether this scenario would be repeated or not.
The US government has announced billions of dollars in aid packages to cope with the economic effects of the pandemic process. With these money injections made to relieve the public and interest rate fixing policies implemented by the Fed, the dollar had depreciated significantly. With this depreciation, the investor gave the green light to precious metals such as gold and investment assets such as Bitcoin. This trend triggered price increases for both Bitcoin and gold.