As the US Infuses Trillions into the Economy, Bitcoin Price Likely to Be Impacted

Policymakers across the globe are investing substantial amounts of new funding to prevent the looming threat of recession or even depression. In the United States, the Senate approved a $2 trillion stimulus package at the end of March, while the House of Representatives has now agreed to a proposal for an additional $3 trillion aimed at helping Americans confronting an unemployment rate close to 15%. In response to the COVID-19 pandemic, the Federal Reserve has initiated an unprecedented wave of quantitative easing.

As the institution overseeing the world’s primary reserve currency, the Federal Reserve employs quantitative easing to inject fresh liquidity into the economy. With the authority to print money, the Fed can create as many dollars as necessary, then infuses these funds into the financial system by purchasing various assets in the open market.