Bitcoin tackles $40,000 as Biden unveils new $6 trillion federal spending budget
President Barack Obama is reportedly planning to increase the federal government’s spending by over $6 trillion over the next ten years, according to a budget he unveiled yesterday. The growth of the federal budget has been a much-discussed topic in recent months due to the implementation of the Tax Cuts and Jobs Act of 2017.
Bitcoin has had a spectacular week. Since Wednesday, the digital currency rose by more than $1,600 to a price of $40,000, its highest since December. The move was largely due to a bitcoin ETF filing with the SEC, which has been reportedly rejected by the US Securities and Exchange Commission. This was, unfortunately, expected by most of the cryptocurrency community, as it is generally viewed as a last-ditch effort by the US government to regulate Bitcoin.
When it comes to mass media, the word “misconception” is bandied about far too often to be taken seriously. That word is now being used to describe stories that, in the opinion of the writer, are unwarranted. So, when the illustrious Wall Street Journal took to referring to what they termed the “misconception” that Bitcoin was a currency, it was obviously time to have a little fun.. Read more about is bitcoin safe and let us know what you think.
Bitcoin (BTC) could get a boost to finally break through the $40,000 mark at the expense of the US dollar, as US President Joe Biden unveils a new $6 trillion federal budget proposal. On Friday, the US president will announce a sweeping fiscal policy, the biggest since World War II, to ensure investment in critical infrastructure, education and health care projects, the New York Times reported on the 27th. May. Biden reportedly wants the federal government to spend $6 trillion by 2022. It also plans to increase total spending to $8.2 trillion by 2031. Biden has already proposed large tax increases on America’s wealthiest corporations and individuals to fund his massive spending program. But by his own admission, it will take at least 2030 for the government to reduce the budget deficit. That means the U.S. will be in huge debt if it borrows money to fund Biden’s record proposal. The U.S. federal deficit increased from $4.17 trillion in January 2020 to $7.92 trillion in May 2020. Source: FRED This scenario offers ideal bullish support for bitcoin after its recent history. The decentralized cryptocurrency has jumped 1,582 percent from its March 2020 low of $3,858, as the U.S. government increased spending to fight the coronavirus to unprecedented levels. On the other hand, the U.S. dollar strength index (DXY), which measures the greenback’s strength against a basket of major foreign currencies, fell 13.38% after peaking in March 2020 amid a global meltdown in markets. The downward trend of the DXY continues despite a rebound in 2021. Source: TradingView. Meanwhile, Anthony Pompliano, a prominent bitcoin lobbyist and investor at Pomp Investments, predicts a further decline in the value of the dollar. The government is proposing to push our country even deeper into debt while destroying the value of our currency, Pompliano said. Historians will write that the government accelerated the destruction of the world’s reserve currency while citizens cheered. Other analysts have also suggested bitcoin – with its fixed bid – as a hedge against the steep US debt curve. US President Joe Biden will announce a $6 trillion budget. Debt as a percentage of GDP will reach its highest level since World War II. Buy #Bitcoin – Bitcoin Archive (@BTC_Archive) 27. May 2021 #bitcoin has no top because fiat has no bottom pic.twitter.com/Zl3AygwVsB – PlanB (@100trillionUSD) May 27, 2021
Bitcoin earns $40,000
The New York Times report raised concerns in the morning: the DXY fell a modest 0.01% in early New York trading, while bitcoin rebounded to $40,000. Bitcoin breaks the $40 mark in early morning trading in New York. Source: TradingView BTC/USD tested its 200-day simple moving average (200-day SMA; orange wave in the chart above), located at $40,756, for an upside breakout. If achieved, the pair will need to close above the 20-day exponential moving average (20-day EMA; green wave) – around $43.655 – to confirm a short-term uptrend.