In the days leading to President Biden taking office, Grayscale was buying Bitcoin heavy. It was pretty clear that the firm was betting against Biden keeping the economy afloat. With a recession likely following the economic impact brought by Covid-19, it is expected that President Biden will be more liberal with bailouts.
His administration is also in support of higher and extended cash handouts that were introduced during Trump’s time in office.
The government printing more money to keep the economy going is set to saturate the U.S Dollar. This will see the already sinking currency hit new lows. In its demise, Bitcoin continues and will continue to grow. Acting as a safe haven, Bitcoin is set to grow in popularity and increase in value.
Now just days in office, the President is already calling for economic relief to be fast-tracked. This will see Trillions printed out of thin air. Under the advisement of his newly appointed Treasury Secretary, Janet Yellen, the administration has been calling on Congress to pass The American Rescue Plan. The plan will see the government spend a total of around $1.9T. Among its many provisions include a $1,400 check to U.S citizens.
The previous checks passed from the government to citizens was around $2,000. Did some of it go to Bitcoin? The evidence was clear with U.S exchanges seeing an increase in deposits of $2,000 in the days that followed the rollout of the money. The majority bought into Bitcoin, notably, these investors have now more than tripled their investment.
Investors More Than Triple Handout
The new Treasury Secretary has been a critic of Bitcoin and those in the industry are concerned that some of her decisions in office might be negative for the digital asset. In the previous regime, Trump had been public in his dislike of Bitcoin and other such digital assets. Fortunately, it was also clear that he did not have the power to ban it. Trump was more outspoken and his view on Bitcoin he expressed on Twitter.
Biden is more conservative and his view might remain hidden. However, much like Trump, he will not be able to stop Bitcoin. In fact, his actions are only likely to strengthen it.
As seen with previous checks, there was an increase in Bitcoin buy orders and price. Some of those receiving the checks opt to buy into Bitcoin which unlike the U.S Dollar has been in an upward trend. Notably, the last time there was a check hand out, Bitcoin was under $10K. Then, the asset was far less popular than it has been since climbing as high as $40K.
The recent coverage by mainstream media and endorsements of the likes of Elon Musk- who has recently changed his Twitter bio to “Bitcoin,” will be a major boost. The number of potential buyers has exponentially increased. While their purchasing power has decreased, with the digital coin having an endless potential in its growth, a buying spree is on the horizon.
Bitcoin’s case has further been strengthened following the Gamestop squeeze which made evident of Wallstreet’s manipulation of the current financial system. A hedge fund shorting Gamestop shares was destroyed through community intervention a few days ago. With other firms afraid of the same reaching them, there was a coordinated move across Wallstreet. The big players were allowed to stop retail investors from buying Gamestop shares.
This move has since triggered an uprising with investors crying foul of Wallstreet’s “game” and power to change the rules when it’s not on the winning side. For those in the crypto industry, they have seen the opportunity to sell on Bitcoin. More so on its attributes such as it cannot be manipulated by Wallstreet since it was created outside of it.
Biden is said to be a supporter of big corporations and in his time in office, it is expected that the U.S economy-more specifically the small businesses, will be hit hard. For this, the only salvation is a safe haven, the only solution is Bitcoin.