Biden Administration has Helped Bitcoin to get Back to $40K once again
Bitcoin was doing well when devastating news from the government made it hit the ground with full impact. The first missile launched by the Biden administration against the unarmed Bitcoin community came in the form of a tax hike. The federal authorities become hungry to hunt down newborn Bitcoin millionaires by increasing capital gains taxes by as much as 30%. While the crypto community was taken aback by this sudden attack, the federal government claimed that it had the right to defend the rapidly devaluating monetary graph.
Before this, Bitcoin had become more noteworthy on a global scale. While the government was busily churning out more printed money into the economy in the form of COVID-19 relief checks, fiat went down on its own accord. Such an unreliable character made many nations including the USA dismissive of fiat in the long run. While fiat was losing value in every place and Bitcoin was gaining ground, the government kept unleashing more shots at crypto from time to time.
Cancer is a mutated cell that refuses to get recycled. Looking at the small picture it seems that the invasion of cancer in a healthy body is for its survival. If the cancer cell claims that it has a right to defend itself, it would endanger the survival of the entire human life. This analogy is perfect to define the current situation of fiat that has been devaluating constantly as a consequence of its natural life cycle.
Congress has been pressuring SEC to take some action against Bitcoin. Consequently, Gary Gensler told media that FINRA would bring more crypto lawsuits this year. Of course, all is not bad news a few days ago the Biden administration showed some consideration and made a ‘statement’ about wanting to look out for the underdog Bitcoin community.
As the government of the USA is trying to navigate the country through the devastating impact of COVID-19 attacks, the economic gap is needed to be filled with more money. By assigning relief checks to the citizens, the economy could jump-start once again after facing a few hike turbulences. Since the economy keeps deflating, the Biden administration has once again announced an $8.2 trillion spending budget for the fiscal year 2021-2022.
This mega amount once again plans to print more fiat currency for pumping into the US economy. As soon as the news was broken by New York Times, Bitcoin spiked to $40K. Although it later settled down to $38K the general impression in the market is that it can effectively serve as the store of value against the upcoming dollar devaluation. For Bitcoiners, it is not wrong to say that the government has been going out to buy and sell hyperinflation weaponry in the middle of a war.