Joe Biden’s handout to the American public could provide the energy and volume to take the price of Bitcoin to new all-time highs. Some polls have suggested that nearly a fifth of all Americans intend to place their cheque into Bitcoin. This does appear to be insanely high but even if these predictions are partially correct, this would still have a significant impact on the price and would be considered as another bullish signal for all crypto markets.
Many financial experts are predicting that this payout will have a huge effect on the markets with eToro analyst Simon Peters believing that it will have influence throughout all crypto markets.
“The announcement from the White House is very significant for risk assets in general, and crypto assets specifically, The $1.9trn stimulus package is already boosting Bitcoin and peers, and with the floodgates now open in terms of new liquidity for the market, we expect fresh record highs to be set for the major crypto assets in short order”
“Momentum was already building in the major crypto assets, and we expect many stimulus checks will mimic previous patterns and be invested into the markets, with Bitcoin and others like Ethereum benefiting directly.”
Previous Bull Runs Suggests Corrections Are Inevitable
If the price of Bitcoin smashes past $60k it is fair to expect some corrections exactly like the one we experienced in February when the price went from $58k to $42k.
For a correction like this to occur the price would need to reach around the $80k mark plus and see about a 30% drop. This type of price activity is based on previous bull runs. The previous bull run in 2017 saw many repeated moves where the price of bitcoin increased by 100% in a short amount of time and took a 30% dip after. Investors are advised to cash out some of their profit for this reason. Either to simply use as fiat or to reinvest again when the market dips.