Second US Stimulus could drive Bitcoin Higher! Second US Stimulus is currently in the works, and according to OKEx CEO Jay Hao, this could drive more people to spend money on Bitcoin.
In a LinkedIn post on Monday, Hao explained that after the first $2.2 trillion dollar stimulus bill was signed in late March, Bitcoin surged by around 58%. He referenced a recent Bloomberg article reporting that the current administration is expected to spend another $1 trillion to stimulate the American economy.
He said that he expects retail investors to be even more interested in Bitcoin, stating, “When it comes to retail investors, I believe that they will be the main promoters of the Bitcoin price surge under the second round of stimulus.”
Hao claims that many recipients did not spend the first stimulus check, but instead saved it due to the uncertain economic climate. He cited a recent CNBC article that noticed an increase of bank deposits by $865 billion in April, a record for the year.
Hao also suggested that since the stimulus check also consisted of loans for small businesses, both retail and institutional investors will have more capital to invest in Bitcoin.
Hao pointed to stablecoins as an alternative, explaining how investors can buy them and “place them in a high-savings account which may yield between 7-12%”.
While he acknowledged that low-risk investment approaches such as savings accounts or savings bonds still fulfill a role and niche, the current situation does not favor them. He recommends avoiding low-risk investments such as treasury bonds, many of which currently have negative yields, and is instead suggesting looking into other traditional markets like Gold.
What do you think? Let us know on our Facebook page!
