According to various reports, U.S. President-elect Joe Biden is planning to create another $3 trillion for Covid-19 relief and infrastructure. The massive stimulus plan and the backers behind the Biden administration have made crypto proponents believe that bitcoin will prosper greatly.
Biden Proposes to Finance Covid-19 Relief and Infrastructure With $3 Trillion
Ever since the coronavirus outbreak took hold across America, politicians and members of the U.S. Federal Reserve has distributed massive amounts of dollars to special interests and Wall Street trading houses. Americans did get a stimulus check for $1,200 during the last program, and then $600 per person during the most recent stimulus plan.
Trillions of U.S. dollars have already been issued for Covid-19, and it is estimated that a quarter of all the USD in existence was minted in 2020. Now reports indicate that U.S. President-elect Joe Biden is planning to distribute another $3 trillion when his administration takes office.
Axios.com contributor Hans Nichols reports that “Joe Biden is considering asking Congress to help suffering Americans in two steps.” Nichols notes that Americans may get a $2,000 coronavirus payment, alongside a tax and infrastructure package worth $3 trillion. Nichols also adds that Biden’s “Build Back Better” program will increase capital gains and the marginal tax rate for Americans who represent the country’s top earners.
Crypto Proponents Believe Stimulus Will Bolster Bitcoin
Ever since the news came out that Biden may create another $3 trillion to kickstart his administration’s “Build Back Better” program, cryptocurrency supporters said that the stimulus will likely bolster bitcoin.
On January 10, 2021, the Twitter account dubbed “Bitcoin Archive” wrote “bitcoin jumped +35% when the 3 trillion in stimulus was announced in July 2020. That could take BTC to $55K if it happened again. Joe Biden will announce another big stimulus Bill on Thursday.”
The crypto Youtuber, “Ivan on Tech,” also tweeted about the $3 trillion stimulus proposal stemming from the Biden administration. “Biden [is] preparing a $3 trillion stimulus,” Ivan wrote. “It will take the stock market and especially bitcoin to insane levels already in February,” he added.
Youtuber Lark Davis tweeted a similar statement and said:
Massive new U.S. stimulus package coming with the new Biden administration. 3 trillion on the table. Bitcoin [is] going to Jupiter.
In fact, during the weekend, while lots of crypto enthusiasts discussed the recent Big Tech censorship, the Biden stimulus conversation was also a trending Twitter topic among bitcoiners. One individual noticed the number of long calls increase on the derivatives exchange Deribit.
“After Biden’s confirmation that he will push out a $3 Trillion economic rescue package (can’t really call it a stimulus), options activity on Deribit shows [a] big increase in long-dated calls in the area north of $100k. Market says, bitcoin number go up to six figures by September,” the individual said.
Biden Backers Show Administration Will be Big Spenders ‘Expecting Something in Return’
Meanwhile, other reports that show all the backers behind the new Biden administration, indicate that the next four years may see a whole lot of careless spending. The Screechingkettle author Jon Reynolds explained on Sunday how the “bankers, defense companies, venture capitalists, private equity firms, telecom industries, intelligence community goons, and economic hitmen gain from donating to the Biden administration.”
Reynolds believes that donors will “expect something in return” and they will be getting “more handouts” as well. After hearing about Biden adding another $3 trillion, one bitcoin proponent said people would be crazy to sell BTC right now.
“Why would anyone sell when Biden will print 3 trillion USD in the first month of 2021?” the individual tweeted. “Do you really think that will be the last stimulus of his 4-8 year presidency?”