Can The $1,400 Stimmy Bring Bitcoin Even Higher?
Last Updated on 17 March 2021 by CryptoTips.eu
Every few weeks in 2021, it seems that Bitcoin is setting a new all-time-high. From $30k in January to $50k in February and now $60k in March.
As the most popular cryptocurrency is still the main driver of the digital payments market and thus the biggest attraction to get people to visit a crypto exchange, we wonder which catalysts are present at this moment, which can take it even higher?
Institutional and retail
First off, it is clear that although the “boomer analysts” keep screaming bubble, Bitcoin is having an incredible 2021 so far. This is mostly due to the inflow of institutional money since the end of October 2020, which is bringing along retail investors for the ride as well.
The subsequent investments of Square, PayPal, MicroStrategy and mostly Tesla have created a clear boom in crypto interest. Although we shouldn’t forget about the all-important social media influencers that are rooting for Bitcoin and crypto all the time (thank you Pomp, CZ, Charles Hoskinson and PlanB for example), the hype surrounding any of Elon Musk’s tweets over Bitcoin is enough to pump it by 10% at times.
#Bitcoin
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) March 16, 2021
Rising channel intact.
Should bounce in the next 2-3 days.
🚀🙌 pic.twitter.com/C7i9KYA6uI
Also remember that institutions are much less sensitive to any spur of the moment sentiment and will HODL their crypto positions longer due to the impact of long term capital gains tax.
Stimmy
Type in Stimmy and Bitcoin into a search engine and learn where a lot of the $1,400 stimulus cheques that the Biden administration are sending out will be going.
Ya’ll keeping the price down until stimmy comes.
— The Bitcoin Rabbi (@thebitcoinrabbi) March 16, 2021
Thanks, fam! 🙏
Coinbase and other exchanges in the US know very well that whenever those cheques are being sent out (timed to be received as from next weekend), the price of Bitcoin and other cryptocurrencies is heavily influenced as a result.
The Financial Times admitted the factor in a piece they did at the beginning of the year when the US government sent out $600 cheques.
You mean my stimmy of ~2.5 million sats? Why, yes, I'm VERY happy about it! 😂#Bitcoin pic.twitter.com/QXB3qYSZz2
— Jonas ₿uyers⚡🥩 (@LDSGeek) March 11, 2021
Fear and greed
Lastly, the simple FOMO (fear of missing out) fact of human behavior is enough to make sure that even though the Fear and Greed index of Bitcoin is at this moment already quite high, people will just try and get into the frenzy whenever Bitcoin has another good day.
In the last hour alone, nearly $500M in #Bitcoin Longs got liquidated, this is a historic ATH.
— Jan & Yann (@Negentropic_) March 15, 2021
There is excess greed in the system, with 60% of contracts levered 20x or more.
Long liquidations are an artifact of the current bull market. pic.twitter.com/n9NciJcS62
During the last bull run, the Fear and Greed sentiment of Bitcoin was consistently in the 90s. This time round it’s a bit lower than that, but we do expect it to top again should Satoshi’s coin indeed reach $100k in a few weeks or months.