Bitcoin Prices Dip Following $2 Trillion Stimulus Deal By U.S. Congress

Michael LaVere
  • US Congressional leaders and the White House reached an agreement on a $2 trillion stimulus relief package.
  • Package includes $250 billion in direct payments to individuals making $75,000 or less. 

Bitcoin prices slipped on Wednesday following the announcement of a $2 trillion stimulus deal agreement between the White House and U.S. Congress. 

According to a report by the Financial Times, President Donald Trump and Congressional leaders have reached an agreement on a stimulus package that would inject $2 trillion in new capital into the American economy. The decision was made to provide economic relief to businesses and individuals struggling from the ongoing Coronavirus pandemic. 

Senate majority leader Mitch McConnell said, 

At last, we have a deal. The Senate has reached a bipartisan agreement on a historic relief package for this pandemic.

McConnell added the package involved a “wartime level” of investment into the nation in response to the viral outbreak. 

Full details of the package are expected to come later today when the deal is formally approved by Congress. A report by CNN claims the package includes $500 billion in loans for distressed companies and $250 billion in direct payments to individuals and families.  Individuals who earn $75,000 or less in adjusted gross income are expected to receive a direct payment of $1,200.

After the report came out the price of bitcoin dropped from a $6,900 high it hit earlier today to about $6,500. The flagship cryptocurrency is recovering from a two-day drop that saw it lose over 40% of its value earlier this year, that came shortly after the World Health Organization (WHO) declared the COVID-19 outbreak a pandemic. 

In the last 24-hour period, the price of bitcoin is down 2%.

Bitcoin's price performance in the last 24-hour periodSource: CryptoCompare

The U.S. stock market's flagship index, the S&P 500, is currently down by little over 1% after the stimulus was announced.

Featured Image Credit: Photo via Pixabay.com

Tim Draper Reveals He Owns Cryptocurrencies Other Than Bitcoin

Michael LaVere
  • American venture capitalist Tim Draper revealed owning more crypto-assets than just bitcoin.
  • Draper expects the value of bitcoin to increase as a result of the Federal Reserve's money-printing tactics. 

American venture capitalist and bitcoin bull Tim Draper claims to own “a lot of other cryptocurrencies” in addition to BTC. 

Speaking in a recent interview with British entrepreneur Rob Moore, Draper claimed that his diversified portfolio in crypto-assets had led to him being “surprisingly up” despite the economic impact of the coronavirus. 

He said, 

You know, when I played Monopoly, I never showed anybody how much money I had so so that you're not gonna get an up or down.

Draper also criticized the U.S. Federal Reserve’s money-printing response to the COVID-19 pandemic, which he said would lead to the dollar crashing in value. He claimed the impact of the falling dollar would drive more value into bitcoin. 

He said, 

There are only 21 million of them and they are going to be more and more valuable as you see governments have less and less.

Draper continued, saying his experience working as a venture capitalist and interviewing entrepreneurs has given him a “pretty good view” of what the future is going to look like. He expects governments to move towards decentralization in a competition for their own citizens. 

Featured Image Credit: Photo via Pixabay.com