Analytics / Forex and Crypto News
The founder of Blockroot.com expects the price of Bitcoin to rise to around $56000. He explains his expectation for two reasons. First, the recently approved US stimulus package will put pressure on the US dollar again and support Bitcoin. The positive correlation of the cryptocurrency with the US stock market will have a positive impact on the price of Bitcoin.
In March last year, when the US launched a program to stimulate the economy by buying bonds and lowering loan rates, the US dollar index began to decline, and the price of Bitcoin began to rise. Investors have shifted their capital from traditional assets to risky ones as the US Treasuries lost their appeal. The massive issuance of dollars reduced the purchasing power of the US dollar, with the US dollar index falling more than 12 percent, damaging depositors and organizations with cash balances.
If we compare March 2020 with March this year, then the situation has not changed. The Fed continues to buy government bonds and mortgage-backed corporate securities. The interest rate has remained at the same level.
And a new $1,9 trillion stimulus package will depreciate the US dollar over the long term.
Today, the price of Bitcoin has risen above the 54000 level. It is worth noting that technology stocks fell today, as a result of which the Nasdaq Composite index soared 3,2 percent. The S&P 500 is up 1,8 percent.