Let us check the cryptocurrency market. Steven Mnuchin said that $1,200 checks for Americans would feature in any deal. This is Because DXY weakness opens opportunities for Bitcoin gains.
This week, BTC (Bitcoin) may see a price boost, as the DXY (the United States dollar currency index) weakens. Thus, one analyst suggested American voters buy.
On Oct. 1, data showed DXY dropping for the fourth day, due to negotiations over a new coronavirus stimulus deal continued in Washington.
In recent months, BTC/USD and DXY have demonstrated a strong inverse correlation. Recent gains of DXY did not translate into intense selling pressure for Bitcoin. Nevertheless, in the long term, fresh losses can yet buoy Bitcoin bulls.
As the United States Senate attempts to thrash out a new deal on coronavirus, which could come with a $2.5 trillion price tag, the U-turn in DXY’s fortunes comes.
On Wednesday, Treasury Secretary Steven Mnuchin spoke with FOX Business. He confirmed that talks were ongoing. Moreover, he added that any deal would include a fresh round of $1,200 stimulus checks for eligible United States citizens.
Mnuchin said that the good news is they have reached an agreement that there will be direct payments like last time in the package if there is a deal.
Mnuchin was speaking a day after a heated debate between Presidential hopeful Joe Biden and President Donald Trump.
Famous trade Toe Vays was looking to get viewers’ attention only by arguing that no matter who will take control of the White House, the United States dollar will struggle anyway.
In a live chat, Vays wrote that no matter who wins, they will keep printing, so we must buy Bitcoin.
Meanwhile, the past days’ retreat started to alter the correlation between Bitcoin and DXY. That is what data reveals.
That is the current situation of the Bitcoin.