The result of this vote will be quite telling as to just how far the government is willing to go to try to curb the economic impacts of the rapidly spreading Coronavirus, and it may provide a lifeline to struggling business and individuals.
One trader is now noting that because virtually all markets are closely watching to see the results of the upcoming vote, Bitcoin could be “toast” if the bill doesn’t pass.
Investors Closely Watch Status of Upcoming Multi-Trillion Dollar Stimulus Bill
At some point this afternoon, the Senate is expected to vote on a massive $2 trillion stimulus bill that Senate Majority Leader Mitch McConnell has referred to as “emergency relief” to help struggling businesses and individuals who have been financially devastated by the Coronavirus.
This bill would result in many Americans receiving a cash payout of $1,200, as well as a nearly $400 billion loan program intended to help small businesses endure through the current economic downturn.
The size of this bill is unprecedented, but it is anticipated to be backed by bi-partisan support due far reaching impacts of this “act of God” that has virtually frozen the economy.
The verdict of this upcoming vote will likely have tremendous sway of the US equities market, which is surging higher today upon expectations that the bill will be passed.
This will likely lead Bitcoin and the aggregated cryptocurrency market to similarly see some intense volatility, with BTC likely to maintain its close correlation to the stock market for the time being.
Trader: Failure for the Bill to Pass Could Have Dire Implications for Bitcoin
Satoshi Flipper – a prominent cryptocurrency analyst on Twitter – explained in a recent tweet that he believes where BTC goes next may depend on the result of the upcoming vote.
“We are IMO at a very important point: If we break out here and finally flip that resistance, I’m going long with serious weight. Otherwise, lots of room back down to $5.8 support. Also was thinking if the stimulus package doesn’t get approved today, then BTC is toast,” he explained.
We are IMO at a very important point:
If we break out here and finally flip that resistance, I’m going long with serious weight.
Otherwise, lots of room back down to $5.8 support.
Also was thinking if the stimulus package doesn’t get approved today, then $BTC is toast. pic.twitter.com/YQ0QtAxqIa
— Satoshi Flipper (@SatoshiFlipper) March 25, 2020
If the stimulus package doesn’t pass during this afternoon’s vote, it is probable that the benchmark stock indices will plummet, taking Bitcoin down with them.
Featured image from Shutterstock.