Bitcoin held gains, bond yields rose and gold slipped ahead of President Biden's next big spending push, which could total between $2 trillion and $4 trillion.

The BTC/USD exchange rate approached $60,000 in an early morning rally in Asia, driven by a flurry of fundamentals, ranging from PayPal's decision to add a crypto payment service to Visa's settlement transactions in the USDC stablecoin. Traders flocked to Bitcoin, believing that the cryptocurrency's robust widespread adoption would prove optimistic.

Bitcoin's main rival, Gold, suffered. The XAU/USD spot exchange rate fell below $1,700 on Wednesday in reaction to an intraday rise in U.S. government bond yields in the previous session that left the dollar stronger. Gold tends to move inversely to the dollar.

The interest rate on the benchmark 10-year U.S. Treasury note rose to 1.773 percent, its highest level since January 2020, before retreating to 1.724 percent at Tuesday's close. Its rise boosted the attractiveness of the U.S. dollar in international markets, leading the U.S. dollar index to regain its early November 2020 high of 93.43. Bitcoin above $60,000 Bitcoin in late February reacted negatively to rising bond yields. However, the cryptocurrency came on its own amid repeated news of its widespread adoption, led by Tesla's $1.5 billion investment and followed by its decision to sell its electric vehicles for the cryptocurrency. Meanwhile, Morgan Stanley also included three bitcoin funds in its investment services portfolio.

Loose monetary policies provided tailwinds for Bitcoin's bullish bias throughout 2020. The cryptocurrency closed the year 302 percent higher as the Federal Reserve kept its interest rates near zero. and bought government debt and mortgage-backed securities at a rate of $120 billion per month.

Bitcoin also soared as the U.S. government borrowed more than $5 trillion for its three coronavirus stimulus packages, raising concerns about a possible monetary debasement and a higher-than-expected rate of -inflation.

The bullish sentiment prevailed in 2021, with institutional adoption in the front seat. Bitcoin rose another 100 percent as it updated its record high above $61,000.

Biden's Spending Spree

More gains are likely to appear this week when President Joe Biden announces a new government spending plan on Wednesday, almost less than a month after. passing a $1.9 trillion stimulus bill. Traders perceive the stimulus packages as optimistic for bitcoin, as investors and companies try to counter inflation fears by increasing their safe-haven offerings.

Larry Milstein, head of agency and government trading at RW Pressprich & Co, says additional stimulus would boost the U.S. economic recovery. In turn, yields on 10-year notes would rise to 2.25 percent by the end of this year, which would get the attention of Fed officials who are committed to keeping their inflation target above 2 percent.

"If we start to see a significant move higher in rates, then we may see a reaction from the Fed," he said.