The ongoing hype behind the upcoming Bitcoin halving and COVID-19 aid approval appears to have a positive impact on BTC price surge. The market-leading coin has been experiencing a free fall before stabilizing at $6,000. Bitcoin has however passed the 7,000 marks to change hands at $7,581 at press time.
This upswing appears to have been triggered COVID-19 relief aid approval by the U.S. This comes at a time when the oil market escaped the negative threshold to gain 19 percent in a span of 48 hours to see a barrel trading at $14 to instill hope in the digital money markets.
BTC price and Bitcoin halving pressure
Since the aid package of $484 billion was announced, the BTC price went up by $3000. Compared to the earlier stimulus package of $2 trillion targeting the individuals in employment affected by the pandemic induced lockdown, it is clear that the additional funding has had a positive impact on the coins price. This is despite the pandemic overshadowing the impending bitcoin halving.
The latest $484 billion approved for the pandemic mitigation and previous $2 trillion stimuli might have caused the digital asset to gain an additional $3,000 on its price. However, the second batch is meant to cushion those who have been laid off as well as t support small enterprises affected by the current lockdown.
The pandemic has seen many “non-essential businesses” close shop awaiting further government directions. The move is seen as a measure to halt the virus spread. Many workers have been confined to work from their homes with others getting laid off disrupting the American economy.
The relief goes beyond helping small businesses but also boost the virus testing kitty. Hospitals and other support services e also set to benefit from the additional financial support.
Upcoming Bitcoin halving and price surge
The Bitcoin price surge could be due to the highly anticipated halving. As the Luno crypto exchange CEO Marcus Swanpoel says, coronavirus relief aid has nothing to do with the surge. There has been a lot of activity around BTC and many are moving it in preparation for the halving event.
He goes on to say:
The rush experienced in March with investors exiting BTC to fiat appears over. With investor eyes on Bitcoin, the resulting outflows might be the reason for the current surge.
These sentiments appear to have been supported by an eToro analyst Simon Peters who suspect that investors are still holding on to their crypto. They are staying put to cash to capitalize on any gains that might surface after the Bitcoin halving event.
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