Bitcoin Extensions Bullish Momentum Extended as Stimulus Talks drag On

Bitcoin hovered between gains and losses as traders await further clues from U.S. Congressional leaders on their next coronavirus toolkit.

The cryptocurrency benchmark jumped 0.07 percent to $ 22,843, suggesting that it would consolidate to the side after setting another record high on Thursday at $ 23,6776 (data from Coinbase). Other top-notch cryptocurrencies, including Ethereum (ETH) and Ripple (XRP), also withered.

Bitcoin holds a majority of its earnings on Friday. Source: BTCUSD on TradingView.com
Bitcoin holds a majority of its gains on Friday. Source: BTCUSD on TradingView.com

Motivation

Top Democratic and Republican leaders are looking to finalize a long-delayed coronavirus stimulus bill as the United States tackles high coronavirus rates, fresh locks, and sluggish economic recovery. Data released Wednesday revealed that the number of people filing for unemployment benefits peaked at three months.

Experts and market strategists believe the declining market outlook has put pressure on US law makers to pass a new stimulus package at the earliest. The prospect of more liquidity coming into the economy, on the other hand, has pushed the US dollar index down to its two-year low.

Bitcoin has risen nearly 20 percent this week on a weaker dollar sentiment. CNBC reported that mainstream investors are buying the cryptocurrency to reduce their exposure to the greenery. They regard Bitcoin as “a store of inflation-protected wealth.”

Bitcoin En Route to Another NEXT?

On Friday, Bitcoin also consolidated as the US dollar tried to pare its losses. The bluefin recovered nearly 0.2 percent, though, staying on its track to log extended losses amid a global anti-dollar sentiment. Further related to the Federal Reserve’s announcement to continue its quantitative easing programs.

“The announcements this week certainly reinforce the prospects of free financial conditions, and the performance of favorable risk assets, led by the Fed will keep the US dollar on a weakening path,” analysts at MUFG told Reuters.

That said, Bitcoin could still act as a safe haven for investors and mainstream corporations who now sit on top of heavy cash funds.

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