Bitcoin (BTC) Price Rallies as Trump Offers Free Cash to Americans
Free cash to Americans. No strings attached. This is exactly what the Trump administration is offering as part of the $850 bln stimulus package that is supposed to cushion the detrimental impact of the coronavirus on the American economy.
The price of Bitcoin (BTC) rallied more than six percent on the news and reaching an intraday high of $5,507 before trimming some of its gains.
During the latest press conference on the coronavirus, Treasury Secretary Steve Mnuchin proposed sending checks to those affected by the pandemic 'immediately.' This will help those who were forced out of their jobs by the mandatory quarantine to make ends meet.
While it's not clear how much exactly Americans are going to get, Sen. Mitt Romney recently proposed a $1,000 paycheck to every adult citizen.
VanEck's Gabor Gurbacs slammed it as 'helicopter money' and predicted that this 'won't end well' the US economy.
🚨#HELICOPTERMONEY INCOMING! Treasury Secretary Mnuchin just now: “We are looking at sending checks to Americans immediately...Americans need cash now and the president wants to get cash now. And I mean now, in the next two weeks." This won’t end well. #Bitcoin #gold #markets pic.twitter.com/MJ21EjM6Px— Gabor Gurbacs (@gaborgurbacs) March 17, 2020
Bitcoin loves stimulus
As analyst Luke Martin noted, Bitcoin moved in tandem with U.S. stocks on the news, which highlights its positive response to further stimulus.
$BTC & stocks still moving in lockstep.— Luke Martin (@VentureCoinist) March 17, 2020
Looks like they both like the conference about further stimulus... pic.twitter.com/aqnLGKe72s
According to a new CoinMetrics report, the correlation between BTC and the S&P 500 recently reached its highest level ever.
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