Bitcoin Declines Soon After Trump Postpones Stimulus Discussions
For the past few months, there have been discussions of second stimulus package for the people of the US. Yesterday, President Trump chose not to move forward in the issue until the completion of the election slated to be held on November 3.
The news had a negative impact on the price of Bitcoin (BTC) and other mainstream financial markets.
In a tweet dated October 6, Trump said “Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19.”
“We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their request, and looking to the future of our Country.”
Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their…
— Donald J. Trump (@realDonaldTrump) October 6, 2020
This implies there will not be any more discussion on additional stimulus package before the completion of election, as per the successive tweets made by the President who was also optimistic about his victory. “Immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”
Subsequent to the tweets, the market reacted in disagreement. While stock markets fell, Bitcoin declined roughly $200 before taking back a portion of the lost ground to trade at $10,700 at the time of writing this article.
The decline in the price of Bitcoin indicates that the asset’s price responds to major events in the mainstream markets. However, some crypto advocates does not like volatility driven by fiscal news as they expect Bitcoin to act as a pure non-correlated asset.