The US sent a check for $ 1,000 'helicopter money' to each anti-Covid-19 citizen who saved Bitcoin a sighted loss, soaring BTC prices by 11%

In a surprise move, Bitcoin price has started to rise, reaching as high as $ 5800 so far. At the time of writing, BTC / USD was trading around $ 5,867 with an 11% increase in 24 hours while there was a daily trading volume of $ 43.4 billion.

Bitcoin price increases dramatically 2

What causes the price to rise?

1. External factors

The main reason for the increase in Bitcoin is attributed to the statement of the US Treasury Secretary. On the morning of March 19, Secretary Steven Mnuchin said the White House was working hard to send a $ 1,000 "helicopter fee" check to most Americans within three weeks to offset the corona virus pandemic.

"Helicopter money" refers to a final monetary stimulus, including printing large sums of money and distributing them to the public to make them spend more and thus boost the economy. Erik Nielsen, chief economist of UniCredit, also said that central banks may eventually choose to print more money.

"We will quickly get out of this situation," Mnuchin to speak with FOX Business.

Cash checks are part of a $ 1 trillion plan introduced by the White House earlier this week. It includes $ 300 billion for small businesses to hire people and keep workers on the payroll; $ 200 billion to lend the Fed a guarantee for tough industries like airlines; and $ 500 billion in live streaming for most Americans.

Mnuchin says adults will receive an immediate payment of $ 1,000 and children will receive $ 500. A family of four will receive up to $ 3,000. If the crisis continues for six weeks, the federal government will send another round of checks of the same value.

In addition, another external factor is stimulating the crypto market. Yesterday 18/03, European Central Bank (ECB) was announced The € 750 billion pandemic bailout aid (PEPP) program is intended to keep the region's financial system functioning and help the economy cope with the devastating shock caused by the corona virus pandemic. And they are willing to do more if needed.

"The board is fully prepared to increase the size of asset purchase programs and adjust their composition if necessary," ECB said.

The announcement came less than a week after the ECB stepped up to buy bonds - promising to buy 120 billion euros ($ 134.8 billion) of additional bonds this year - and with central banks around the world. reducing interest rates of currency swaps.

2. Internal factors

Contrary to Bitcoin's bullish action, the US stock futures contract has dropped lower today suggesting another tough day for the traditional market.

Bitcoin's exit from the stock market was also seen yesterday when Bitcoin reached $ 5,500 while Wall Street had a devastating day with the standard indices dropping 5%.

"The huge price increase for Bitcoin right now, BTC is flat throughout the historic risk-off days in the market," said Hunter Horsley, CEO of Bitwise. for good.

Bitcoin and gold began to separate from the S&P 500 about three days ago. Analyst Willy Woo is seeing Bitcoin form a pattern of accumulation and gold hit a double bottom

Matthew Kaye, CEO and managing partner of Capital Blockhead blockchain hedge fund, said The ongoing setup seems like a perfect basis for a rally in the medium term of 1-3 years.

High inflation, 'printing money' and very thin interbank liquidity can be very effective for Bitcoin to make profits even further.

In addition, Kaye emphasized that investors (not traders) should return to the Bitcoin game. If this happens, the macro outlook is definitely rising.

Another factor that could be the cause of the price increase, is that 14,000 BTC (about $ 82 million with the current Bitcoin price of $ 5867) have been continuously transferred from Huobi to the anonymous wallet over the past two hours. shows The current balance of this wallet totaled 20,000 BTC.

Bitcoin price increases dramatically 3

In comments on one of these transactions, a Twitter user suggested that someone was withdrawing their Bitcoin for long-term hodl.

Combined with that, Tether has increased the circulating supply of USDT to a staggering 13.3% in the past three months (equivalent to 627 million USDT in circulation), with a total of $ 161 million in tokens. add in the last 24 hours. The new USDT Tether in has always been considered a strange correlation with the price trend of BTC.

Bitcoin disables the bearish model

The recent increase is not surprising for the bears that are sure Bitcoin will drop below $ 5,000 as BTC is forming a bearish trend, signaling that the downtrend is set to continue.

For now, however, this discount story may have been disabled, according to Big Cheds. BTC is still stuck in an ascending triangle, but it can still be considered an extended pattern.

You can see the price of Bitcoin here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


According to AZCoin News

Follow the Twitter page | Subscribe to Telegram channel | Follow the Facebook page

Crypto loans are only 5.9% of the annual interest rate - you can use the money effectively without selling coins. Earn up to 8% interest per year with stablecoin, USD, EUR & GBP with insurance up to 100 million. Come on, get started now! →


seo marketing wordpress seo seo hosting seo and marketing word press seo wordpress and seo wordpress marketing hosting seo seo press pro market seo seo & marketing seo e marketing e marketing seo seo pro wordpress marketing & seo seo di wordpress wordpress seo host hosting and seo wordpress hosting seo wordpress seo wordpress wordpress for marketing seo press wordpress marketing for seo