Overbought fears didn’t dent the Bitcoin market sentiment this Thursday as the cryptocurrency climbed to another fresh record level.

The BTC/USD exchange rate topped at $39,798 around 1230 EST for the first time in its lifetime, only hours after it blew past the $38,000-level. That brought the pair’s year-to-date gains up by more than 35 percent in its very first week. Meanwhile, its returns from the infamous mid-March nadir of $3,858 exploded by approx 930 percent.

bitcoin, btcusd, xbtusd, cryptocurrency
Bitcoin eyes an extended run towards $40,000, more than double its record top from December 2017. Source: BTCUSD on TradingView.com

Bitcoin Bullish Against Government Spending

Traders looked past Wednesday’s violent clashes between the federal police and pro-Trump supporters in Washington’ Capitol Hill. Instead, their focus shifted on what the political power’s transfer from Republicans to Democrats would mean for the cryptocurrency market.

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Elexium, an independent market analyst, said Thursday that under Mr. Biden, the US would impose stricter lockdowns to curb the coronavirus spread, mostly in line with what European governments have done lately.

The analogy took cues from the Democrats’ pledge to raise government spending after coming into power. Many analysts agree that the administration’s first decision would be to increase Americans’ direct benefits from $600 to $2,000. Under lockdown, the spending will likely increase further to protect small and medium-scale businesses.

“The Biden administration will make very [serious] attempts to get places like Texas and Florida in Full Lockdown,” SAID Elixium. Bullish for Bitcoin. Bearish for USD.”

Biden Win Certified

The prospect of additional stimulus has also increased after Democrats won the Senate by flipping two Republican seats in the recent Georgia run-off elections. Meanwhile, a joint Congress session earlier Thursday—which the pro-Trump protestors were attempting to delay—affirmed Mr. Biden’s win over President Donald Trump.

The latter committed to transfer powers in an orderly fashion.

“The expectation is now we’ve avoided a gridlock, and more financial support will be available to the economy through this coming year, rather than less,” Christopher Smart, chief global strategist at Barings, told the WSJ.