The Biden administration plans to submit a $6 trillion spending budget proposal later this week. Right after the news broke out, bitcoin’s price increased to above $40k but failed to sustain it as of writing these lines.
According to a report from The New York Times, this budget is part of Biden’s two-part federal agenda and will be spent in the 2022 fiscal year. The total spending could rise to US$ 8,2 trillion.
Bitcoin broke $40,000 shortly after the announcement but has since retraced a bit to the levels it currently trades at.
BTC/USD. Source: TradingView
Analysts of the crypto community quickly jumped after the announcement, arguing that Bitcoin could store value against a steeping debt curve.
This is one of those scenarios where fiat currency will be printed again, reinforcing analysts’ view on fiat hyperinflation and laying down a bullish path for Bitcoin.
Bitcoin is getting on its feet, now trading at slightly below $40,100.
It tumbled below this level over the past couple of weeks following a series of negative news hitting the market.
After the tax hike proposal, Biden said it would take the government until 2030 to decrease its spending deficits, which plants a debt burden for the United States.
Featured image courtesy of The Australian
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