U.S. government spending may lead to upward Bitcoin (BTC) prices, according to Gemini crypto exchange co-founder and CEO, Tyler Winklevoss.
“The Fed continues to set the stage for bitcoin’s next bull run,” Winklevoss said in a July 22 tweet, which included an article link on the government agency’s discussions of further stimulus spending.
As a decentralized borderless digital asset away from government control, Bitcoin holds as a potential hedge to mainstream markets and national dollars — a point often stressed by a number of crypto industry participants.
Bitcoin holds a 21 million coin maximum supply, protecting the asset against value dilution. “When money printer go brrrr and inflate the stonks market, it’s time to Bitcoin,” Winkelvoss said in a July 18 tweet, referring to U.S. money printing resulting in a rising stock market, while giving the nod to Bitcoin as an alternative.
Since March, the U.S. government has beefed up its monetary activity, attempting to prop up a struggling economy — the result of to COVID-19 preventions measures. Such efforts have included a $2 trillion stimulus package, which, in part, dished out essentially free money to U.S. citizens, depending on income levels.
With current stimulus money reaching its end soon, the government must assess the situation, possibly issuing further relief capital, as mentioned by Morgan Creek Digital co-founder Anthony Pompliano in a recent YouTube livestream. The financial expert mentioned U.S. dollar inflation over the last several decades, noting the importance of exiting cash into various assets, including Bitcoin.