Tyler Winklevoss believes the United States’ Federal Reserve’s economic stimulus strategy will positively impact bitcoin. The Fed is readying to roll out more economic stimulus. Winklevoss thinks it could trigger the next Bitcoin Bull Run.
The co-founder and CEO of Gemini Cryptocurrency Exchange tweeted that the U.S. government spending may lead to upward Bitcoin (BTC) prices. Tyler Winklevoss believes that the FED’s action will be the main driver behind Bitcoin’s next Bull Run. He tweeted:
“The Fed continues to set the stage for bitcoin’s next Bull Run.”
Good News to Bitcoin
Winklevoss was referring to the U.S. Federal Reserve’s ongoing search for the best strategy to salvage the economy from the repercussions caused by the Covid-19 pandemic. Printing money is one of the options the Federal Reserve is considering to deliver an economic stimulus package. He believes that such an economic phenomenon can only mean good news to bitcoin.
The FED’s printing more fiat money, this can only translate to higher prices for bitcoin on the cryptocurrency market. The ongoing economic turmoil has given investors the perfect reason to consider bitcoin as an alternative investment solution.
Winklevoss thinks that more money printed by the FED prints fiat will drive up BTC’s price on the crypto market. The current economic turmoil, motivates investors to look at Bitcoins as an alternative investment solution compared to traditional mainstream markets and fiat dollars.
Bitcoin as an Alternative
Bitcoin is a decentralized and borderless cryptocurrency that’s not controlled by any government. It has shown its potential to become a hedge to mainstream markets. Bitcoin holds a maximum supply of 21 million coins, which will protect it against value dilution. The frenzy caused by COVID-19 and the worldwide economy taking a huge hit. Tyler Winklevoss puts a positive spin on things. The philanthropist said the U.S. money printing rises stock prices while giving Bitcoin a nod as an alternative. He tweeted:
“When the money printer goes brrrr and inflates the stocks market, it’s time to bitcoin.”
Economists have always used the alphabets like U and V to describe successful economic recoveries. However, the Covid-19 pandemic has created a real one-of-a-kind case scenario. Economists are now saying they need to create new symbols to illustrate the potential recovery process.
Exiting Cash
The United States’ government has since March beefed up its monetary activity in an attempt to fix a struggling economy. The said measures have included a $2 trillion stimulus package that dished out free money to U.S. citizens based on their income levels.
The government is reassessing the situation as the current stimulus money comes to an end. Morgan Creek Digital co-founder Anthony Pompliano mentioned in a recent Livestream the possibility of issuing further credit. Pompliano emphasized the importance of exiting cash into assets like bitcoin.