Nancy Pelosi Says Tuesday is Deadline if White House Wants Pre-Election Stimulus, BTC Traders Standby
Lucas Cacioli Oct 19, 2020 05:45
Dem Nancy Pelosi told the White House it has until Tuesday to reach a deal with Democrats if it wants additional stimulus before the elections next month. How will BTC react?
Democrat House Speaker Nancy Pelosi (D., Calif.) has told the White House it has 48 hours, or until Tuesday, to reach a deal with Democrats if it hopes to provide an additional round of economic stimulus before the elections next month.
Senate Democrat Nancy Pelosi has put a hard deadline on the stimulus negotiations between Democrats and Republicans as no agreement has yet been reached. House Democrats have proposed a $2.2 trillion relief package, and although President Donald Trump has said that he's prepared to go beyond his own party’s $1.8 trillion proposal—Senate Republicans remain in favor of a much more modest package are pegged as unlikely to support Trump in this compromise.
According to the Wall Street Journal on Oct. 18, when asked about whether a deal was likely to be reached in the 48-hour deadline, Pelosi responded, “That depends on the administration.“ She asserts that the Tuesday deadline, “only relates to if we want to get it done before the election, which we do."
An aide to Pelosi reportedly told the WSJ, that if no deal is reached by Tuesday it's unlikely to a stimulus package would be produced before the Nov. 3 election, the WSJ said, quoting an aide to the Senate Democrat.
Republican Tom Reed concurred with the assessment saying that if a stimulus package is not passed before election, it may not happen until February.
Bitcoin Price and Stimulus
Bitcoin has seen a huge increase in value this year, largely based on the bet by investors that the trillions in government and central bank money printing and relief spending globally in response to the COVID-19 market disruption will likely lead to very high inflation and US dollar debasement.
In theory, high inflation and the US dollar losing purchasing power will send the Bitcoin price surging as it solidifies its position as a hedge investment and store of value.
This inflation theory is currently being heavily supported by an onslaught of public companies and notable Bitcoin investors such as the Winklevoss Twins and Max Keiser.
For now, a further impasse between the Republicans and Democrats on reaching a stimulus amount agreement could see the Bitcoin price stall or even fall slightly. However, should the two sides reach an agreement by Tuesday, the price of BTC should rise consequently.
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