The price of Bitcoin has fallen quite rapidly over the weekend to the dismay of many traders and influencers alike that were calling for a new ATH of 70k US dollars per BTC. Bitcoin is currently hovering around 54k dollars a pop which some see as worrisome. Considering that it was trading at 10k just a few short months ago, bulls are still firmly in control with institutional money still flowing in with Meitu adding roughly 40 million dollars worth of cryptocurrency to their holdings. 

The bullish case writes itself with a simple yet persuasive narrative that has proven overwhelmingly successful. Simply put, stimulus packages require enthusiastic money printing AND major institutions are shifting percentages of their liquidity into bitcoin. Today it was announced that Biden and his team are preparing to spend 3 trillion dollars on stimulating an ailing economy. While there are talks of raising taxes significantly, fears over inflation are looming.


The bearish case comes in the form of the recurring India FUD. The Indian Government are moving forward up to date legislation in an attempt to stifle cryptocurrencies in general to back their own centralized digital currency. Apparently this includes attempting to block the IPs of cryptocurrency exchanges in the country to prevent Indians from being able to access them. According to Reuters the bill will criminalise possession, issuance, mining, trading and transferring crypto-assets through the use of fines. With a majority in government, the current Modi administration seems set to pass the bill comfortably. 

I am inclined to be swayed by the bullish case for more than the bearish case since cryptocurrency bans are rarely successful whereas unchecked government spending, helicopter money and steep inflation are sure fire ways to depreciate your currency. In this case the USD currency is effectively the world currency and that bodes well for Bitcoin.