A recent Washington Post report claims that Joe Biden plans to increase government spending to $ 4 trillion as part of his infrastructure package. Many believe that this could increase the price of bitcoin even more.
to the Report Youtudi, Biden’s government infrastructure program, is part of his cabinet’s “better recovery” plan. This program reinforces speculation about uncontrollable inflation. Many believe that increasing government spending will increase dollar inflation.
Biden’s economic team is now looking to raise taxes. Under the new plan, Democrats plan to raise $ 3 trillion in taxes. Earlier, $ 1 trillion was supposed to be made this way.
To pass the new plan, Biden must satisfy moderate Democrats such as Joe Manchin.
Last March, US lawmakers approved a $ 2 trillion bailout package, which serves as Biden’s impetus for a speedy recovery plan.
The rise in the Fed’s balance sheet coincided with a gradual rise in the price of bitcoin. The devaluation of the dollar and the weakening of the currency against bitcoin has been one of the main scenarios of rising bitcoin prices.
The Federal Reserve has previously stated that it has no plans to raise interest rates until 2023. On the other hand, some believe that stock markets have grown due to inflation caused by current monetary policy.