Bitcoin may become the biggest winner of the US $6 trillion economic stimulus plan

In today's ever-changing era, the economic stimulus plan has attracted much attention as an important means to deal with the economic crisis. As the global economic environment continues to change, Bitcoin, as an emerging digital currency, is gradually emerging and becoming the focus of investors and economists. Recently, the US government has launched an economic stimulus plan of up to $6 trillion. This move is not only aimed at alleviating the economic impact of the epidemic, but also creates an excellent opportunity for the popularization and development of cryptocurrencies such as Bitcoin.

It can be said that the reasons why Bitcoin has become the winner in this huge plan are mainly reflected in the following aspects. First, the implementation of the economic stimulus plan will lead to the injection of a large amount of funds, which will in turn promote the intensification of inflation. In this case, many people regard Bitcoin as an effective tool to fight inflation. The total supply of Bitcoin is limited to 21 million pieces, and its scarcity and anti-inflation characteristics make it a safe haven for investors.

Secondly, with the implementation of economic stimulus measures, the liquidity of the market will be significantly improved. In this process, more and more individual and institutional investors have begun to pay attention to Bitcoin and other cryptocurrencies. According to data, since the release of the economic stimulus plan, many investors have turned their funds to Bitcoin, driving its price to rise continuously. In fact, many well-known investment institutions and individual investors have begun to include Bitcoin in their investment portfolios, hoping to obtain higher returns.

In addition, technological progress has also provided strong support for the development of Bitcoin. Bitcoin's underlying technology, blockchain, is attracting more users with its decentralization, transparency and security. More and more merchants are beginning to accept Bitcoin as a means of payment, which not only enhances the use value of Bitcoin, but also lays the foundation for its further price increase.

Of course, in addition to technical and market factors, Bitcoin's legal status and regulatory environment are also constantly improving. As the global attention to cryptocurrencies intensifies, governments and financial regulators have begun to gradually establish a sound regulatory framework. This improvement in regulation not only provides a guarantee for the legalization of Bitcoin, but also further enhances investor confidence.

Against this background, many investors are full of expectations for the future of Bitcoin. Whether institutional investors or ordinary consumers, everyone is thinking about how to seize the opportunities brought by Bitcoin in this wave of economic stimulus. According to the predictions of some market analysts, the price of Bitcoin may reach new highs in the future, or even break historical records.

However, like any investment, Bitcoin also faces certain risks. High market volatility, changes in regulatory policies, and technical security issues may affect the value of Bitcoin. Therefore, investors need to remain rational and fully assess their risk tolerance when participating in Bitcoin investment.

In general, Bitcoin, as an emerging digital currency, is expected to become the biggest winner in the US $6 trillion economic stimulus plan with its unique advantages. For ordinary investors, seizing this opportunity may enable them to obtain considerable returns in the future economic environment. In this new era full of challenges and opportunities, how to effectively utilize the potential of Bitcoin has become a question worth pondering for everyone.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Over the past few weeks, the entire world, including the Bitcoin industry, has been disrupted by the outbreak of the coronavirus COVID-19. In fact, to mitigate the spread of COVID-19, national authorities were forced to take emergency measures, which closed thousands of businesses and caused millions of people to lose their jobs around the world. In short: the economic impact is huge.

Image source: Pixabay

It is therefore not surprising that governments have been forced to react. Canada announced an 82 billion Canadian dollar stimulus package, the European Central Bank expanded its large-scale asset purchase operations, and Hong Kong promised to give each of its citizens 10.000 Hong Kong dollars.

But the United States is playing a bigger game.

White House economic advisor Larry Kudlow announced at a press conference on March 24 that he believes the US government's economic stimulus plan "will be about $6 trillion."

It is reported that $2 trillion of this (the plan has already been approved by the US Senate as of press time) will be paid directly to businesses and individuals suffering under the pressure of the coronavirus outbreak, and the remaining $4 trillion will go to the Federal Reserve.

To put into context how staggering this $6 trillion number is, here’s what we can see: $6 trillion is equivalent to one-third of the entire GDP of the United States, 130% of the Federal Reserve’s balance sheet, enough to give every person on the planet $850, or to buy 900 million Bitcoins at current prices — though there aren’t 900 million Bitcoins in total.

Bitcoin Bullish

While none of this stimulus will go directly to Bitcoin, analysts believe that the money will only greatly increase the value proposition of Bitcoin and other cryptocurrencies.

Well-known market analyst and podcaster Preston Pysh recently commented on the importance of the trillion-dollar U.S. stimulus to Bitcoin during a podcast with Morgan Creek Digital founder Anthony Pompliano.

Regarding the $1,000 checks that the U.S. government is about to send to American households, Pysh noted that many millennials are ready to allocate a significant portion of these checks to Bitcoin because they see the value of the technology and a reliable digital currency in this digital world where scarcity is fleeting.

More broadly, analysts believe that this stimulus could drive inflation rates higher, similar to the kind seen after the abolition of the gold standard.

BitMEX Research wrote in a recent report that Bitcoin is likely to see a significant appreciation given the influx of monetary and fiscal stimulus measures that have already begun:

"We believe that in this changing economic system, where economic and financial markets are on the loose, there is no significant anchor at all, and there is no specific inflation target, which may be the biggest opportunity Bitcoin has seen in its short history."

Su Zhu, CIO and CEO of Three Arrows Capital, supports this.

According to previous reports, investors believe that the US dollar is on an inflationary path and "it will be difficult to fall back", which is likely to be a factor that prompted Bitcoin to rebound to "$50,000" at a relatively fast speed.

On March 24, driven by the US economic stimulus plan, global stock markets and crypto markets rose collectively, and Bitcoin rose by more than 16%, once approaching $6,900.