In the wake of the global pandemic, which has led to the coronavirus fiscal stimulus, the US economy is contracting at a rate not seen since the Great Depression of the 1930s since the first quarter of 2020. In just six weeks, a total of 30 million Americans filed for unemployment claims.
The United States Federal Reserve amidst this, printed trillions of dollars to soften the blow of the coronavirus lockdown on the economy. However, it wasn’t just the United States Federal government, and there were several major financial institutions ignited their money printer to print a coronavirus, causing a crash in their economies. And this money availability has boosted the value of stocks this month.
However, even with all money printed at the most rapid rate, that effort could not keep the majority of the masses from losing their jobs or the restoration of lost production.
This implies that although the money supply is on the rise, the availability of commodities is declining. Bruce Ng and Juan Villaverde of Weiss Crypto Ratings reported, the authors contend that this enormous amount of availability of Coronavirus fiscal stimulus has become simpler than ever at a time when purchasing crypto.
Additionally, while the economy is getting quantitative easing, bitcoin is planning for quantitative hardening in fewer than 10 days.
Grayscale Investments In its latest report titled “Quantitative Tightening,” also indicated that bitcoin is the best defense against central bank money printing as unrestricted Coronavirus fiscal stimulus might lead to the degradation of the US dollar.
Bitcoin market players are still anticipating this technical hardening to cause a rally of bulls, but Charlie Shrem recently said it’s probably not going to happen instantly.
Throughout Digital Blockchain Week, Shrem discussed how well the halving of the coronavirus “black swan occurrence” is “crazy.”
Now that people are about to receive their unemployment checks while staying at home and instantly Bitcoin’s everyday supply is going to be reduced by half, according to him, all this liquidity will pour through the cryptocurrency sector.