Bitcoin Crosses $12K as Pelosi and Mnuchin Near Stimulus Deal
On Wednesday, BTC/USD climbed 2.79 percent to $12,256.
“I’m urging you to take another look at Bitcoin as a possible 1-10% allocation in your portfolio during the next 15 months,” he told investors.
Bitcoin continues its upside momentum as hopes for stimulation deal resurface. Source: TradingView.com
Bitcoin was among the fallen ones. The benchmark cryptocurrency plunged by more than 60 percent in only two weeks of trading. Nevertheless, its recovery picked momentum after the passing of this $2 trillion stimulus package. At one point in the next quarter, the BTC/USD exchange rate was up by nearly 230 percent from mid-March lows.
“The Federal Reserve has cut interest rates to 0%,” he explained. “They intend to keep us in a zero-rate environment for the near future. We’ve got another $2 trillion on the way […] My base case for [Bitcoin] is approximately 10x to $100,000 and the bull case is approximately $250,000 per Bitcoin.”
The trend remained the same on Wednesday as the cryptocurrency breached $12,000. That, at best, showed cautiousness in the end of futures traders. It may lead to downside corrections in the not too distant future.
The stimulation has, therefore, played a critical role in deciding the next Bitcoin bias. But with the present package drying out, and a delay in passing the second one before the US presidential election, the cryptocurrency has entered a medium-term bias battle.
Published at Wed, 21 Oct 2020 05:36:45 +0000
The Bitcoin futures market didn’t show as much excitement to the cost rally because the Spot one. According to data fetched by Glassnode, funding rates across leading cryptocurrency markets, such as Binance, Deribit, and BitMEX, turned negative over the weekend. It was the identical period when Bitcoin closed over $11,000.
Bitcoin rose on renewed optimism for the second coronavirus stimulus package, while the US dollar plunged.
House Speaker Nanci Pelosi said a bill for the compromised aid is on the way after affirming a fruitful, 45-minute telephonic conversation with Treasury Secretary Steven Mnuchin. Simultaneously, Senator Mitch McConnell, the vast majority leader, warned his lot not to negotiate a pre-election deal, stating the US cannot stomach another enormous federal package.