Bitcoin, Stocks Nosedive Despite Incoming $900 Billion Stimulus

Key Takeaways

  • The U.S. Congress has approved a $900 billion fiscal stimulus and passed it on to Donald Trump for a final signature.
  • A new variant of coronavirus has caused a major upheaval in the U.K., as the government there imposes strict lockdowns.
  • Bitcoin and stock markets dropped in tandem yesterday, as traders grew anxious of a resurgence in SARS2-CoV-19 cases.

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The narrative for higher gains in the stock market, gold, and Bitcoin following more stimulus failed on Monday. Instead, a new aggressive strain of coronavirus took center stage, fueling apprehensions of renewed lockdowns. 

Stimulus Package Plummets Bitcoin

“At long last, we have the bipartisan breakthrough the country has needed,” said the Senate majority leader Mitch McConnell. 

Lawmakers have approved the stimulus bill on the last working day of the winter session. After U.S. President Donald Trump signs on it, the law will come into effect.   

The new $900 billion financial aid package is the second relief package following the $2 trillion package passed in March. Earlier this year, coronavirus fears toppled all markets, including Bitcoin. Government intervention was necessary due to the severity of the crash.

The package grants $600 payments to individuals and a $300 unemployment benefit per week. This is just half of what the U.S. government gave out the previous time. 

The bipartisan committee also approved $284 billion for small business loans, will direct another $20 billion to small business grants, and $15 billion to live event venues.

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Moreover, a significant portion of the bill will be aimed at the “procurement and distribution” of coronavirus vaccines. 

However, just as vaccines and stimulus were projecting a healthy recovery of the economy, a new coronavirus strain has renewed lockdown possibilities. This new strain is, reportedly, showing a higher rate of transmission. The mutated variant has been identified largely in the U.K. and South…

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