Free cash to Americans. No strings attached. This is exactly what the Trump administration is offering as part of the $850 bln stimulus package that is supposed to cushion the detrimental impact of the coronavirus on the American economy.
The price of Bitcoin (BTC) rallied more than six percent on the news and reaching an intraday high of $5,507 before trimming some of its gains.
During the latest press conference on the coronavirus, Treasury Secretary Steve Mnuchin proposed sending checks to those affected by the pandemic 'immediately.' This will help those who were forced out of their jobs by the mandatory quarantine to make ends meet.
While it's not clear how much exactly Americans are going to get, Sen. Mitt Romney recently proposed a $1,000 paycheck to every adult citizen.
VanEck's Gabor Gurbacs slammed it as 'helicopter money' and predicted that this 'won't end well' the US economy.
Bitcoin loves stimulus
As analyst Luke Martin noted, Bitcoin moved in tandem with U.S. stocks on the news, which highlights its positive response to further stimulus.
According to a new CoinMetrics report, the correlation between BTC and the S&P 500 recently reached its highest level ever.
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