Bitcoin Crosses $40k as Biden Presents New $6T Govt Spending Funds

As United States President Joe Biden presents a new $6T government spending funds proposal is published, Bitcoin (BTC) surpasses $40,000 at the expense of the US dollar.

Biden Presents New $6T Government Spending Funds

Joe Biden, United States President will address the most expansive fiscal policy since World War II on 28 May. The New York Times reported that this was done to assure investments in important infrastructure, education, and healthcare initiatives.

Biden presents a new $6T government spending funds proposal to spend in 2022. In addition, he intends to increase overall expenditures to $8.2 trillion by 2031.

Biden had previously suggested huge tax increases on America’s wealthiest corporations and people to support his huge spending plan. However, the government’s fiscal imbalances may not be reduced until at least 2030, according to the Times. As a result of borrowing money to fund Biden’s record proposal, the United States would confront a massive load of debt. 

According to experience, the circumstance acts as a perfect bullish backstop for Bitcoin. The decentralized cryptocurrency increased 1,582% from the March 2020 low of $3,858 as the US government increased expenditures to record levels to battle the coronavirus crisis.

The Demise Of The World’s Reserve Currency ‘USD’

In contrast, the US dollar strength index (DXY), which measures the strength of the greenback against a basket of leading international currencies, fell by up to 13.38 % after rising in March 2020 amid the worldwide market crisis.

Meanwhile, Anthony “Pomp” Pompliano, the founder of Pomp Investments and a well-known Bitcoin lobbyist, forecasts additional reductions in dollar bids.

“The administration proposes to further indebt our country while simultaneously eroding the value of our currency,” Pompliano stated. “Historians will write that the government hastened the demise of the world’s reserve currency as citizens cheered them on.”

The government is proposing to push our country further into debt, while simultaneously destroying the value of our currency.

The financial media used to be about holding those in power accountable.

Where have the true journalists gone? Who will stand up & push back?

— Pomp 🌪 (@APompliano) May 27, 2021

Other analysts have chimed in, recommending Bitcoin — with its fixed supply — as a hedge against a steepening US debt curve.

US President Joe Biden set to announce $6 Trillion budget.

Debt as a % of GDP will rise to highest levels since World War II.

🤔 Buy #Bitcoin

— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) May 27, 2021

#bitcoin has no top because fiat has no bottom pic.twitter.com/Zl3AygwVsB

— PlanB (@100trillionUSD) May 27, 2021

Bitcoin Is Now Worth $40,000 Again

The New York Times report sparked concerns throughout the early morning U.S. trading session, with the DXY dipping by 0.01 percent at the New York opening bell while Bitcoin regained $40,000.

The BTC/USD exchange rate challenged its 200-day simple moving average (the orange wave in the chart above) for a breakout move to the upside, which is now at $40,756.

If this target is met, the pair will be looking for closing above its 20-day exponential moving average (the green wave) — approximately $43,655 — to reaffirm its short-term bullish bias.