Bitcoin retests $40,000 after Biden new budget

TL;DR Breakdown

• American President set to push for jumbo annual budget
• Effect of budget on crypto, stock market

After last week’s serial plunge, Bitcoin price has once again tested $40,000 after American President Joe Biden would push for a $6 trillion budget for 2022.

The entire crypto market and even the stock market responded to the announcement as all markets painted green throughout the day.

According to a New York Times report, Joe Biden’s $6 trillion budget is the highest amount the U.S would spend after World War II as the American president aims to push for a more expensive annual budget onwards.

Reports have it that by 2031, Biden will push for a $8.2 trillion budget.

The price of Bitcoin spiked 7 percent after Biden’s announcement, trading above $40,000. Bitcoin price, however, now has retraced its steps and back below $40,000.

The stock market, on the other hand, rose slightly. The Dow Jones industrials rallying 0.4 percent; the S&P 500 0.3 percent; and the Nasdaq added 0.2 percent.

Biden’s critical focus in jumbo budget

According to New York Times, the annual $6 trillion budget proposed by Joe Biden would focus on infrastructure, education, and, more importantly, healthcare. The budget would also see an increase in tax income for the government, even as high as it has never gotten to after World War II.

The main aim of the expensive budget is to help the Biden government help more Americans attain the comforts of middle-class life.

Reportedly, the Republicans are critical of the budget, with Republican Senator Shelley Moore Capito, commenting “It just seems like the trillions keep on coming.”

It is worthy to note that with just news of the jumbo proposed budget having such a magical effect on prices in the crypto and stock market, the eventual passage and implementation of such a budget mean unlocking new bounties for crypto prices.

Analysts also revealed that big government spending leads to inflation, making investors look to other places, such as scarce assets, to plug their cash.

Source: https://www.cryptopolitan.com/bitcoin-retests-40000-after-biden-new-budget/