The BTCUSD pair continued to rise as the countdown for “halving” got closer. The event, which will happen in the next 33 days, will see the number of blocks rewarded to miners reduce into half. This will lead to lower supplies, which could boost prices.
Soaring US Debt
Another reason why the price of Bitcoin rose was that investors are starting to get concern about the soaring US debt. According to data from the US debt clock, the country’s debt has risen to more than $24.08 trillion. This debt equates to a whopping $72k for every person living in the United States and 6.6 times the federal revenue. In contrast, the national debt was just $5 trillion in 2000.
Worse, the government is planning to load more of this debt. Media reports have said that Donald Trump wants to implement a $2.2 trillion infrastructure project. Nancy Pelosi and the Democrats are also preparing for another stimulus package worth more than $1 trillion. At the same the Federal Reserve is continuing to print cash. According to the Fed, the balance sheet has soared to more than $5.8 trillion from just $3.8 trillion in September last year.
More Indian Demand
Another catalyst for Bitcoin prices is that demand from India has been rising as the government has implemented a national lockdown. The increase in volume was reported by Ashish Singhal, who is the founder of CoinSwitch. Another report by Forbes said that most brokers were seeing increased demand. The same is happening in the futures market.
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BTCUSD Technical Analysis
On the two-hour chart, the BTC/USD pair has remained above the important support shown in blue below. The price also exited the important ascending triangle pattern on Monday. The price is also above the 100-day exponential moving average. It is also struggling to move above the important resistance level of 7,500. The bullish trend will remain if the pair is able to sustain levels above this resistance level.
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