Bitcoin has exploded higher and higher in the past 24 hours.
The coin is now trading for $ 12,750, around 7% higher than it was 24 hours ago.
This recent spike in Bitcoin price is due to two fundamental news events: PayPal is adopting cryptocurrencies – and more fiscal stimulus is imminent in the U.S.
Bitcoin rises as business talks continue
Bitcoin has exploded higher and higher in the past 24 hours. The coin is currently trading for $ 12,750 – this has made it one of the best performing macro investments of the past day.
Not to mention, BTC has also risen sharply over the past week, having bottomed at $ 11,200 last week on news of frozen withdrawals on OKEx.
It seems that this recent surge was due to two fundamental news events that should send more capital to Bitcoin and other digital assets. These news events are:
PayPal will soon offer support for cryptocurrencies. While you won’t be able to withdraw Bitcoin, Ethereum or Altcoins purchased on the platform – many see this as confirmation for this space. PayPal also gives users the ability to use digital assets to purchase items from vendors.
The United States White House confirms that the next stimulus package is likely to come in the near future. Many see this as confirmation of the scarcity of BTC, which should be compounded as more capital is injected into the US economy.
In response to these discussions, the US dollar is falling, which is also driving Bitcoin higher. Bitcoin is seen as a hedge against movements in the US dollar price compared to other currencies.
Other fundamental trends are bullish too
Other fundamental trends are favoring the BTC bulls.
Raoul Pal, CEO of Real Vision and former hedge fund manager , sees the macroeconomic trends as an indication that further monetary stimuli are coming:
Speaking of Bretton Woods, this IMF article alludes to a huge change ahead, but it lacks any real clarity other than that it allows much more fiscal stimulus through monetary mechanisms… Fiat will be worth less than hard assets globally. And that means that gold and #Bitcoin in particular will be THE means to circumvent the increasingly less valuable system. It also creates incentive systems for other nations to opt for a hard currency system in order to attract capital. “
Monetary and fiscal incentives will drive Bitcoin higher as investors seek safe havens to hedge their wealth against inflation.