Various markets, along with the cryptocurrency market, closely monitor and are sensitive to information coming from the world's largest economy. Joe Biden's new administration plans to literally flood the United States with trillions of dollars in response to the economic devastation caused by the Covid-19 pandemic.

The Axios news reported that Joe Biden had asked congress to provide a $ 2,000 financial incentive to every American. He also proposed a $ 3 trillion support package as part of his “Build Back Better” program. He did so after a recent report that another 140,000 jobs were lost in December.

"Economic research confirms that in the current crisis and especially at such low interest rates, the proposed measures will be beneficial to the economy despite the increase in the fiscal deficit."

Of course, this stimulus could be significantly reflected in the increase in the prices of financial assets and thus also Bitcoin and other cryptocurrencies. Many investors are trying to find a safe haven for their finances and protect them against inflation. However, inflation is being driven even higher as a result of such steps. Although governments, especially in the past, have warned of risky assets, including Bitcoin, the situation is currently reversing. More and more institutional investors are entering the cryptocurrency market with a clear goal - to become mega HODLers in the sector.

Bitcoin is increasingly seen as the digital equivalent of gold, which is a major reason for the influx of institutional investors. Such attention helped Bitcoin in 2020 when it tripled its price. Recent weeks are even more favourable than previous ones in this regard. This growing trend could continue well into 2021 despite a slight and expected decline in recent days. Even JPMorgan Chase has acknowledged that Bitcoin is gaining gold’s market share.