Bitcoin Bracket For Almost A Trillion Dollar Stimulus Bill And Fresh Fed Fire Power

Bitcoin and major cryptocurrencies including ethereum, XRP Ripple, litecoin and chainlink are eyeing two huge pillars of support in the run-up to Christmas.

Last month, the bitcoin price, along with equity markets climbed by massive government stimulus measures throughout 2020, climbed back to its all-time highs in 2017 of about $ 20,000 per bitcoin.

Now, after a bipolar group of law-makers outlined details of a $ 908 billion stimulus package on Monday, traders are keeping a close eye on new guidance from the US Federal Reserve on its emergency bond-buying program as its two-day meeting begins today.

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Lawmakers in Washington have finalized a $ 908 billion coronavirus support framework, though hurdles remain and the bipolar group faces an uphill battle to get leadership from either party to agree to the bill prompting – something the group wants before the end of the year.

Meanwhile, the Fed is expected to note this week that it will continue the $ 120 billion a month of debt purchases it launched at the start of the pandemic until the recovery meets certain conditions at the end of its policy meeting tomorrow two days.

“The [Fed’s] language will replace the guidelines ‘over the next few months’ and offer the Fed more flexibility on the timing of tapering as the economic outlook evolves, “Morgan Stanley

economists wrote in a recent note.

The growing prospect of a new stimulus deal, along with further action by the Fed, is keeping investors on their toes this week.

“With a large amount of bitcoin in circulation right now, I expect to see the bitcoin price hold tight this week, staying in the $ 19,000 range,” Artur Schaback, co-founder of peer-to-peer bitcoin and Paxful cryptocurrency exchange, he said via email.

“Next week, it might be a different story. As Santa’s rally continues, we may be looking at a significant price correction,” Schaback said, adding “it’s time to sell well.”

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Looking to next year, the bitcoin and cryptocurrency community is feeling bullish due to a combination of government stimulus funds overflowing the system and the continued development of bitcoin as a safe haven asset.

“Bitcoin should have a great year thanks to the macro conditions caused by huge government stimulus packages in 2020,” Ilia Maksimenka, chief executive of a Estonian cryptocurrency wallet provider and decentralized finance platform PlasmaPay, said by email, adding huge injection. cash into the system has also boosted bitcoin’s reputation as digital gold.

“The indicators for bitcoin in 2021 are extremely positive. With governments around the world printing huge sums of money in response to the Covid-19 pandemic, the macro trends for fiat against bitcoin favor ‘digital gold’ strong over the coming year. “