Stocks, crypto soar as Congress nears stimulus package deal

By Nicholas Marinoff

Investors are apparently feeling more optimistic after Senate leaders signaled this morning that they were close to reaching an agreement on an economic stimulus package. The Dow Jones Industrial Average later spiked by as much as 1,600 points on the news, while cryptocurrency is also slightly up at the time of writing.

The total crypto market cap now stands at just shy of $180 billion. Bitcoin has added more than $300 to its price in the last 24 hours and is trading above the $6,600 mark. Ethereum has shot up to $136, while Ripple’s XRP is back at $0.16.

Other top coins are also faring well. BTC is up by nearly $2,000 from where it stood just 11 days ago on March 13. At that time, the world’s number one cryptocurrency by market cap was trading at $4,800. That day marked lows for several of the industry’s top-10 coins, as Ethereum was struggling at $109 and Litecoin was down to $30 from its present $39. Bitcoin Cash also stood at $147 after trading in the $400 range in February.

However, the real winner during today’s early hours is the stock market. After hitting its lowest point in over three years yesterday, the Dow Jones has shot up by more than eight percent and is once again back above 20,000 points. NASDAQ and the S&P 500 also gained more than six and seven percent, respectively.

That's mostly being attributed to the stimulus package moving forward. Senate Minority Leader Chuck Schumer and Treasury Secretary Steven Mnuchin commented that they’re looking to have a deal secured by the end of today. Schumer says there are “still a few little differences,” though he doesn’t believe they will “get in the way.”

The deal, which stalled yesterday as Democrats sought concessions, now includes provisions for four months of federal unemployment payments for freelancers and gig economy workers. Schumer described it as “unemployment on steroids,” as workers will obtain whatever funds their states provide along with an additional $600 each. 

Democrats are also suggesting $25 billion in extra funding for hospitals. One remaining sticking point is a $500 billion Treasury fund to assist failing companies. Democrats are asking for more congressional oversight regarding how the money is used, which Mnuchin and the White House have reportedly agreed to.

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