Bitcoin (BTC) starts another week with $ 19,500 and up when the Brexit crisis hits massive money pressure in the US.

Cointelegraph will look at Bitcoin’s vulnerable price factors this week as the shocking $ 19,000 support is still ongoing.

$ 7 trillion to print money?
The most controversial elements in the future election period of President-elect Joe Biden are already clearer – and that’s good news for Bitcoin.

As Biden approaches its inauguration, he has already announced plans for a $ 7 trillion recovery package to tackle coronavirus fallout. This will add a huge new debt to the already huge grief the United States has gathered this year.

Even on the basis of a weak dollar, the United States may face a strong combination of dangerous economic factors that reduce welfare. Consequently, the refuge’s appeal was never real.

We had a hard time in 2008 with so much debt, and since 2008, debt all over the world has skyrocketed. “We can not even calculate the debt,” Jim Rogers, co-founder of Quantum Fund, told George Soros at an investment summit last week, quoted by Reuters last week.

“If Janet Yellen becomes the next Secretary of State, she loves to print and spend money.”

Historical chart of the Federal Reserve budget. Source: Federal Reserve System.
As the Cointelegraph reports, the dollar is expected to continue to fall in 2021, which has traditionally contributed to the rise in bitcoin. The dollar is already at its lowest against a basket of trading partner currencies since April 2018.

As proof of which direction the US is heading, Preston Beach pointed to the opposite direction of US debt and M2 money rate.

“Check the inconsistency between these two maps – only in 2020,” he told Twitter followers.

Money supply growth M2 + 22.5%. The money rate reduced by -20%. The seal is built into bonds and shares. There is chaos in the middle class. You may want to quit Bitcoin. ”
The stimulation goes, but without control
The new debt may appear much earlier than even Biden can call it. As senators begin to suggest on Sunday, a new stimulus package for coronavirus could arrive as early as Monday.

Democratic Sen. Mark Warner of Virginia told CNN that the bill would cost nearly $ 1 trillion and would provide “targeted assistance.”

“I think we have the first lines. We are now working on the language so that we – early tomorrow morning – can pass laws. ”

Despite promises made by Secretary of State Steven Mnuchin a few months ago, the new stimulus bill has not changed significantly. However, a new $ 1,200 incentive check for qualified Americans no longer appears in recent proposals.

It would have been his first $ 1,200 campaign check since mid-April, worth about $ 4,000 if he had invested in Bitcoin at the time.

Britain meets Brexit Waterloo
Either the UK and the EU agree on a Brexit trade agreement – success or failure.

After several deadlines and recent attempts to resolve the controversy have been delayed, both sides now acknowledge that the time is up and that there are only a few days – or less – between leaving the UK with an agreement or leaving the EU.

“We, as always, are calm, and if there is still a way out, we will see,” Michel Barnier, the EU’s chief negotiator, told reporters.

Analysts said last week that the pound was limited on Monday as uncertainty persisted, and that the sudden absence of a trade agreement would automatically lead to further devaluation.

As with all major geopolitical events, Bitcoin’s potential has benefited from the shock wave for some time, and this is likely to happen later on Monday.

As the Cointelegraph reported last week, Nigel Farage, former leader of the Brexit British Independence Party, described Bitcoin as “the ultimate anti-blocking investment”, referring to London’s strict restrictions on individual freedoms regarding coronavirus.

Buzzword FOMO founders
Within Bitcoin, concerns remain unchanged as to whether the increase in “fear of missing out” or “FOMO” from institutional investors will lead to increased pressure on group purchases and offers.

Even ordinary media enjoy the idea of ​​a price change thanks to the entry of major players in the market, which is even more possible thanks to the Federal Reserve, which supports the stock markets and creates artificial competition.

Grayscale, an investment giant with more than $ 10 billion in bitcoin assets under management, will be the first industrial heavyweight to take advantage of current conditions.

“Institutional investors want to build a portfolio in the wake of Covid and how they need to change their position in light of how governments are introducing incentives into the system,” said Michael Sonnenshin, CEO of Bloomberg.

Source: CoinTelegraph

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