I will not beat around the bush here. I am counting on a bounce to Bitcoin and altcoins upon the stimulus news. We are already seeing the beginning of it. This is the biggest stimulus package being passed to date, especially in light of the $1400.00 checks that many Americans will get. They will be eager to spend some of that money; however, I know many people will see this as an opportunity to invest.
Here is some perspective:
1. When Trump announced in October of 2020 that he believed that a bigger stimulus package was needed than one democrats had proposed, Bitcoin jumped.
https://bitcoinist.com/bitcoin-bumps-higher-as-trump-calls-for-bigger-stimulus-than-democrats/
2. According to some economists, the jump near the beginning of January is credited, in part, to Biden’s stimulus proposal.
https://cryptotelegram.com/us-stimulus-effects/
3. Now that the stimulus has passed the Senate and is almost certain to pass the House again, with the changes, Biden is expected to sign the bill as early as Tuesday or Wednesday.
4. Direct deposits from the stimulus package will begin almost right away. We are no longer talking about a proposal. It is happening.
For these reasons and more, expect the bounce. There are no guarantees and there could always be unexpected or unforeseen events that will have an effect on the economy; however, this is big. There are practical and tangible reasons to believe the bounce will happen. How big will it be? How long will it last? Perhaps not long. Only time will tell us for sure.
Personally, am putting a little extra cash into my crypto wallet right now in anticipation of the bounce. I will put a little more when that check is deposited. I have a friend who says that he is putting it all in his COINBASE Pro account. Not me. I am still too conservative for that. I will spend some (for the economy’s sake;), and then select a variety of investments, of which crypto will be a part, but not all. When I first took an economics class in college many years ago, I was taught that it was important to have a diversified portfolio. I still believe that today. Yes, I may miss out on some bigger gains, but I will sleep better at night with the lower risk.
These are my opinions. Buy, sell, and trade at your own risk. Feel free to like, comment, and tip me below. I will continue to research and speculate about the future of cryptocurrency and provide easy to read and simple statements for educational and entertainment purposes.
Here is my Coinbase referreal URL. We both get $10.00 in Bitcoin if you sign up and spend buy $100 of crypto:
https://www.coinbase.com/join/snuffe_p
