The US has finally agreed on a stimulus package. It will inject the economy with $2 trillion in an effort to curb the coronavirus fallout. The traditional stock indices in Asia and Europe, as well as cryptocurrency markets, are rallying on the news.
The groundbreaking deal was struck between opposing members of US government early Wednesday morning, reports Bloomberg.
"At last we have a deal," Senate Majority Leader Mitch McConnell remarked on the Senate floor. "I'm thrilled that we're finally going to deliver to the country."
The abundant package encompasses $500 billion to bail out companies and back loans. A further $350 billion is set aside to aid small businesses. And $150 billion for hospitals, and health care provisions, such as supplies and equipment. In terms of direct payments, the package sets out $1,200 for each lower/middle-income American adult with an extra $500 per child.
Asian markets responded positively to the news, with Tokyo's Topix index rising 6.9%.
Global markets closed the week under the bear’s banner once again. Oil prices dropped, economies declined, and the Dow Jones closed the week with losses of 17.3%—uninspired by promises of an incoming $1 trillion stimulus package from the US government.
Compared to last week’s disaster, Bitcoin handled the deepening economic crisis with aplomb. It ended the week on a high note, currently trading at around $6,070—up from lows of $4,121 last week, according to data metrics site CoinMarketCap.
Much...
Over in Europe, the Stoxx 600 was up 4.4% and the UK's FTSE 100 up 4.5%.
The price of Bitcoin added 5% in the time since the news broke this morning. This has increased its recovery from recent lows of $4,500. While it appears to generally be uncorrelated with traditional markets, it has shown more overlap in recent weeks.
The US markets rose yesterday ahead of the deal, with markets sensing it was nearly finalised. The Dow added 11%—taming its recent bearish trend—yesterday. Similarly, the S&P 500 cited the most significant single-day gain in 12 years. The US markets are yet to open today.
A US politician has asked the Treasury to mint two platinum coins, each worth $1 trillion, in order to help the nation’s economy deal with the coronavirus pandemic.
The coronavirus has killed over 13,000 people worldwide, including 348 in the US, according to data metrics site Worldometers. It has also ruined the country’s economy, and the government is working out how to save it.
The two $1 trillion coins would be used to pay $2,000 to everyone in the US, and $1,000 a month after that—until a y...
However, those in the Bitcoin world wonder whether the sudden influx of new dollars will devalue the dollar. "In a sea of ever inflating fiat currencies and 2 trillion dollar platinum coins, what are you actually earning every month?" Blockstream CSO asked, on Twitter, referring to a proposal to create two trillion-dollar coins.
In a sea of ever inflating fiat currencies and 2 trillion dollar platinum coins, what are you actually earning every month? How do you adjust when the supply is being toyed with daily? The answer is #Bitcoin. 21 million $BTC. 100 million sats per $BTC. It’s the ‘c’ of money.
As reported by Decrypt, the proposal for a digital dollar dropped was dropped from the coronavirus economic stimulus bill yesterday. The provision would have witnessed the production of a digital fiat currency to hasten emergency funds onto businesses and individuals.
While it may have boosted the awareness of digital currencies, some said the notion of embarking upon such an undertaking amid a pandemic was beyond comprehension.
A provision to use a “digital dollar” to speed emergency funds to businesses and individuals has been omitted from the latest version of the coronavirus economic stimulus bill, published late Monday.
The new measures, proposed by US Democrats in response to the coronavirus pandemic, were introduced in early versions of the 1,400 page Take Responsibility for Workers and Families Act as a means of providing stimulus payments to businesses and individuals. The Act introduced a system of digital w...
"Using a health crisis to sneak in a payments system. By the time they've built this platform (it could take years) the virus will have already passed," said monetary economics and Bitcoin analyst, John Koning.
Ridiculous. Using a health crisis to sneak in a payments system. By the time they've built this platform (it could take years) the virus will have already passed.
Nevertheless, a new draft bill posted yesterday by the US Senate Committee on Banking, Housing, and Urban Affairs indicates that this isn't the last we'll see of a digital dollar.
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Coronavirus and crypto
All of Decrypt's coverage of Coronavirus and crypto.
Black Friday was supposed to be last week. While crypto was on sale the day after Thanksgiving, today is looking even darker for crypto investors.
Bitcoin dropped more than 7% in 24 hours, Ethereum deflated by over 8%, and Solana shed 11% of its surging price tag today. In all, the global cryptocurrency market cap fell by nearly 7%. Only two coins in the top 20 managed to stay in the green—Terra, up 4% in 24 hours, and Polygon, which boosted its price by 2%.
It's not just crypto. After a solid s...
The Federal Reserve, the United States’ central bank, said today at the conclusion of its regular Federal Open Market Committee meeting that it would keep its key overnight interest rate near zero and make no change to its monthly bond purchases of at least $120 billion.
In an expected move from the US central bank, Fed Chairman Jerome Powell announced that it would keep its strategy in place at least until there is a bounce back from the COVID-induced recession—but added there was “great uncert...
It’s the start of a new week, and there’s plenty of good news to go around for investors, traders… and, well, just about everyone: another COVID-19 vaccine is showing signs of being ready for the masses, and the markets are feeling good. Bitcoin is trading for nearly $17,000 per coin, marking another 2020 high, while traditional stock and equities markets are booming.
A few hours ago, Moderna Labs announced positive results for a potential coronavirus vaccine, which the company tested on a group...
