Bitcoin Soars Record High as Fed Finalizes Monetary Stimulus Package

Bitcoin Soars High As Fed Finalizes Monetary Stimulus

The Federal Reserve has vowed to keep injecting cash into the financial markets until the U.S. economy recovers to its maximum. Following the Fed’s announcement meeting, the U.S. dollar index bolted higher, although, the respite was short-lived. Meanwhile, Bitcoin exceeded as high as $22,000 after crossing through the $20,000 barrier for the first time overnight.

Since the group of U.S. congressional lawmakers outlined a $900 billion stimulus package, traders are closely watching for fresh guidance from the U.S. Federal Reserve on its emergency bond-buying program.

Despite the regulatory framework, the bipartisan group is currently facing struggles to get leadership from either party to agree to the stimulus bill. The group is looking to get a final decision before the end of the year.

Over the week, the Fed is also expected to signal that it will continue its $120 billion per month of debt purchases that it had launched at the start of the pandemic until the recovery meets certain conditions.

New Stimulus Deal Could Push Bitcoin Higher

Analysts are expecting that the central bank will now pump more money into the economy via bond purchases. Fed Chairman Jerome Powell could also repeat his long-term plan to let inflation heat up before cutting rates. Both of these circumstances could likely please Bitcoin enthusiasts

With the possibility of a new stimulus deal, combined with further action from the Federal Reserve, investors are having an overall bullish sentiment for the cryptocurrency combined with the continued narrative that bitcoin is a safe-haven asset.