Is President-elect Joe Biden long on Bitcoin and cryptocurrency?
President-elect Joe Biden has named a former blockchain professor from MIT, Gary Gensler, to head up the United States Securities and Exchange Commission (SEC) to replace Jay Clayton only a week after a new dollar depreciating plan for $1.9 Trillion in economic stimulus.
Gary Gensler Next SEC Chair
President-elect Biden’s transition team to takeover financial policy of the United States includes former Commodity Futures Trading Commission (CFTC) Gary Gensler who will assume the SEC chair position vacated by Jay Clayton.
Along with his extensive experience in regulating financial markets, Gensler also has a long history in public policy and finance. Gensler is a senior advisor to the MIT Digital Currency Initiative and lectures on blockchain technology at MIT sloan.
The announcement is truly exciting for cryptocurrency advocates as the SEC are desperately in need of a more refined and a balanced approach to crypto regulations in the US—and Gensler has publicly stated that the nascent industry needs public policy to succeed.
Host of CNBC’s Crypto Trader, Ran Neumer posed the question on Twitter:
“I think @JoeBiden is Long BTC and ALTS. Why else would he print so much money and appoint a blockchain professor for MIT as the new chair of the SEC?”
Stimulus and Bitcoin
President-elect Joe Biden also unveiled the details of a $1.9 trillion coronavirus rescue package last Thursday, with several stimulus measures to fight against the COVID-19 pandemic.
With the new US President Joe Biden coming into office, he appears set to continue flooding the market with trillions of dollars of unbacked freshly printed fiat currency, which is exciting news for the Bitcoin bulls.
The new stimulus plan will almost certainly include a provision to increase the amount of the second round of direct payments (that is, stimulus checks) from $600 to $2,000, and there will be more money for vaccine distribution, schools, rental assistance, small business aid, and tax credits.
$1.9 Trillion is a gigantic number, as even all of the circulating Bitcoin added up it is just $711 Billion, which is more than 2.5 times that of Bitcoin’s market capitalization.
From the chart above, we can easily observe that when the M1 Money Stock supply increases, Bitcoin Price also follows. If history repeats itself this time, we may see another surge in Bitcoin price after Biden’s administration plan comes into effect.
The Bitcoin price is $37,427 at the time of writing showing an increase of 3.8% in the last 24 hours.
Image source: Shutterstock