Over the past four hours, Bitcoin has experienced a surge that has delighted many cryptocurrency lovers. It has risen from $ 9,941 to $ 10,249, gaining 3.1%.
As many Americans resort to investing their first $ 1,200 incentives in the coveted cryptocurrency, many cryptocurrency market experts are debating whether Americans will do the same with the second wave of incentives due to begin in the coming days. Treasury Secretary Steven Mnuchin announced that the second stimulus is scheduled for August.
At the end of March, the us Treasury Department conducted the first disbursements of incentives for $ 1,200 each. This was a decision by President Donald trump to ease the economic difficulties caused by the pandemic. Because of the coronavirus, many Americans lost their jobs, saw their incomes fall, and the US economy as a whole, received a crushing blow.
White house economic adviser Larry Kudlow spoke about this in an interview with CNN and confirmed that in light of the pandemic, residents of the United States will see a second round of incentives for $ 1,200, which is part of a stimulus package worth about $ 1 trillion.
While it is expected that Americans will invest this money in basic goods and services and in addition to their basic income, it is assumed that this will be the case. Earlier this year, Coinbase CEO Brian Armstrong reported that some Americans who first received $ 1,200 incentive checks actually redirected their funds to invest in Bitcoin (BTC), rather than using them for basic goods and services.
Users who invested their first incentive checks in BTC were rewarded for their efforts, and received a return of 45.5%, from $ 1,200 in April, to about $ 1,750 at the moment, and BTC has just now exceeded $ 10,200.
When US officials first announced their plans for a $ 1 trillion incentive package, the value of BTC in the cryptocurrency market exceeded the value of $ 9500, overcoming a long period of low volatility, where the value of the crypt ranged from 9000 to $ 9500.
The Winklevoss twins believe that BTC is a good hedging investment.
Gemini CEO Tyler Winklevoss, in a recent public Tweet, defended the idea that Bitcoins are the way to go and should be invested in. He explained that with the Federal reserve’s plan for mass money printing, the ground is set for the next wave of rise.
The CEO of the crypto exchange believes that in the current economic turmoil, investors will consider Bitcoin as a more interesting alternative investment solution, in contrast to the main markets.
The maximum BTC 2020 will soon be overcome?
In mid-February, when the COVID19 pandemic was limited only to China and parts of Asia, and global markets broke records of declines, Bitcoin recorded its most expensive year.
Now the cue ball is very close to this gold value of $ 10,500. This will be the closest significant test for the king of cryptocurrencies.