US exchanges saw a 3 percent increase in a single session on June 5 due to speculation about the new employment report and the planned $ 1 trillion incentive package. According to Forbes, aggressive hopes of a "V" recovery may increase the likelihood of a new Bitcoin bull market in the coming weeks.
According to Bloomberg, the Trump administration will offer another "trillion dollar incentive package" next month. As Forbes previously reported, Senate Majority Leader Mitch McConnell said the second incentive package will be the last.
As is known, US President Donald Trump signed a historic incentive bill on March 27. This package includes cash payments to individuals and a loan program for small businesses. Since then, the price of Bitcoin has increased by approximately 55 percent from $ 6 thousand to $ 10 440. Therefore, expectations were expressed that the new incentive package might cause a recovery in BTC price.
According to CoinMarketCap data, BTC is trying to climb to $ 9,700 levels, slightly down from the last rally at the time of writing.
Incentive Packages and Bitcoin Boost
It does not show direct interest in high-risk assets such as incentive packages, stocks and cryptocurrencies. However, it creates optimism among investors and adds additional liquidity to the financial market. Since the end of March, stock market trading applications such as the Bitcoin spot market and Robinhood have seen a significant increase in user productivity. Bitcoin and the stock market were dominated by the fear of losing the rally (FOMO) that lasted from April to May. Unsurprisingly, both Bitcoin's spot market and stock apps primarily appeal to retail investors.
Investors' trust in the short-term trend in the stock market benefits Bitcoin. However, the leading cryptocurrency has important macro factors that can boost the next increase.
Bitcoin and the Bull Cycle
There are three main factors that increase the probability of an enormous Bitcoin bull cycle in the medium term. These factors are:
- Greater corporate compliance
- Compelling historical patterns
- Fluctuation trend after BTC is halved
In the past seven days, crypto investment firm Grayscale has purchased 9,550 BTC. This figure is more than BTC issued by miners in the same period. Miners can then generate about 900 BTC per day.
Grayscale's BTC accumulation directly reflects the institutional adoption rate of Bitcoin. Institutions can also invest in Bitcoin through Grayscale Bitcoin Trust, a publicly traded investment tool in the U.S.
When Grayscale's assets (AUM) managed by Bitcoin Trust exceeded $ 3 billion in April, corporate Bitcoin demand reached record levels. Along with the increasing corporate appetite for BTC, various historical models show that Bitcoin will see a long uptrend in the coming months.
The BTC blockchain registered a new difficulty adjustment this week. However, Bitcoin has historically seen a long-term bull market every time the difficulty adjustments are made. For example, the BTC mining issue declined in early April. In the next two months, BTC rose 80 percent.
Comfortable financial conditions in the USA, a strong stock market rally, increased appetite for risky assets and positive macro factors indicate that Bitcoin may show an optimistic upward trend. Time will show the best.
