Bitcoin Nears $11.5K on US Stimulus Prospects, Seems to Confirm Bullish Trend

Optimism for the prospects for a U.S. stimulus package rose after the White House boosted its offer to Democrats on a pandemic relief package Friday.

AccessTimeIconOct 10, 2020 at 11:32 a.m. UTC
Updated Sep 14, 2021 at 10:07 a.m. UTC

Bitcoin's (BTC) uptrend gathered pace on Saturday with prices nearly testing $11,500 for the first time in over a month.

  • The biggest cryptocurrency by market value rose to $11,484 at 03:10 UTC – the highest level since Sept. 2, according to CoinDesk's Bitcoin Price Index.
  • Likely driving the move was optimism for the prospects for a U.S. stimulus package after the White House boosted its offer to Democrats on a pandemic relief package to the north of $1.8 trillion Friday.

A new round of stimulus would likely benefit BTC in at least three ways: 

  1. Government and central bank spending around the world in response to the coronavirus-induced slowdown, in the eyes of many, will inevitably result in inflation, and therefore be positive for the cryptocurrency. 
  2. Given the current correlation between equities and BTC, and that some investors treat BTC like it's a tech stock, anything that boosts equities invariably boosts BTC.
  3. Stimulus paychecks would give individual investors money to invest, and some of those investments would likely be BTC.

Buyers stepped in around $10,500 earlier this week after payments company Square announced it had put some 1% of its assets into bitcoin.

At press time, bitcoin is changing hands near $11,320, representing a 2% gain on the day.

CoinDesk - Unknown

Bitcoin daily chart


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.