On March 11, Biden officially signed the approval of stimulus package worth 1,900 billion USD to recover the economy in Covid-19 pandemic. What does this stimulus mean for the current Bitcoin price and will make the situation better?

On March 10, the House of Representatives approved President Joe Biden’s ambitious American rescue plan – a stimulus package worth nearly $ 2 trillion. The bill represents one of the biggest government interventions in the US economy.

Jason Deane, Bitcoin analyst at Quantum Economics, commented:

“We believe this is a good opportunity for the path of growth for Bitcoin and the entire crypto market as a whole.”

One of the main reasons for this flow of thinking comes from Bitcoin’s appeal as a hedge against inflation. The decline in the value of USD is beneficial to the investment case of Bitcoin, an asset that cannot be devalued when the government embarks on printing more fiat currency.

Ingo Fiedler, co-founder of blockchain research lab, thinks that Bitcoin’s short-term rise is only part of the response to the stimulus package. Bitcoin may continue to accelerate during the COVID-19 epidemic as it is set for a variety of new investment flows.

Indeed, institutional investment in Bitcoin appears to be happening globally. In just two days after the stimulus package was passed in the Senate, Beauty App Meitu announced the purchase of $ 40 million BTC and ETH and the other Nordic tycoon added Bitcoin to the balance sheet, joining the American companies like MicroStrategy and Square.

Despite concerns about monetary inflation, the theory behind this stimulus is that it will kickstart the US economy. Biden’s bill was passed by the House of Representatives on March 10 with a ratio of 220 to 211. The bill, now signed by the president, is expected to come into effect on March 12.