Bitcoin Price Rises After US Proposes Stable Law

Anyone who has said Bitcoin is beyond politics clearly didn’t know what happens when politicians try to regulate crypto.

On Wednesday, MP Rashida Tlaib announced the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act, a bill that would require anyone mining stablecoin to have a Federal Reserve approved banking charter.

Twitter crypto, naturally was not very happy, and the bill looks very unlikely to become law. But barely had the bill been proposed, Bitcoin charted a northward course as its price spiked aggressively in the early hours of Thursday morning.

Bitcoin had fluctuated between $ 18,900 and $ 19,200 for 12 hours before a sudden surge took it above $ 19,450. At the time of writing, the price is softening a bit, but the skyrocketing was especially noticeable.

Now it is entirely possible that the surge was not linked to the bill, there was a host of positive news for Bitcoin investors yesterday. These include optimistic statements about the future of crypto from Visa and PayPal.

Bitcoin even got the seal of approval from Larry Fink, the CEO of asset management firm BlackRock who chairs a $ 7 trillion investment fund.

But following these announcements, Bitcoin responded with a giant “meh”. Could this be something to do with selling US dollars? The U.S. Dollar Index (DXY) – a tool that measures the value of the USD against a basket of other currencies – hit 90.22 on Thursday, its lowest level since April 2018.

This led Mark Wilson, chief investment officer of Morgan Stanley to predict on Bloomberg that the US dollar will slide 10% next year. We’ve seen Bitcoin suck gold before, is the greenback next?

S&P 500 breaks records extending November race

US equity markets continued their uptrend from November to December. The S&P 500 hit another historic close high, with the Dow and Nasdaq doing equally well.

The performance appears to be in relation to a bipartisan relief proposal circling US lawmakers. A stimulus package has been on the cards for months, and in fact, we’ve been writing about the idea for months. But sentiment around this new $ 908 billion proposal, less than half of the Democrats’ initial $ 2 trillion proposal, seems optimistic.

As Senate Majority Leader Mitch McConnell looked at the size and breadth of the stimulus, the White House added weight to the proposal by signing the plan.