Bitcoin moved higher on Monday as traders assessed signs of progress in a long-delayed coronavirus stimulus package in the US.
The benchmark cryptocurrency was up 0.67 percent at lunchtime in New York, trading at circa $10,742. Elsewhere in the high-cap crypto market, all the tokens surged higher on Bitcoin’s upside cues, with Chainlink’s LINK adding the highest 4.58 percent gains.
Trump’s Health, Stimulus
Confidence rekindled across the risk-on markets as Donald Trump made a surprising public appearance while being treated for coronavirus only weeks before the US presidential election.
The US president’s medical team said that he could get discharged by early as Monday, even though he reportedly received medications meant for severe coronavirus patients only.
Mr. Trump also remained active on Twitter to push his political campaign further. One of his tweets specifically asked the US Congress to release the second stimulus aid for American households, businesses, and unemployed citizens.
OUR GREAT USA WANTS & NEEDS STIMULUS. WORK TOGETHER AND GET IT DONE. Thank you!
— Donald J. Trump (@realDonaldTrump) October 3, 2020
On Sunday, Democratic House Speaker Nanci Pelosi told CBS in an interview that lawmakers are “making progress” on the package to reintroduce some of the unemployment benefits that expired in late July.
The Democrats last week passed a $2.2 trillion stimulus bill but expected to face resistance from the Republicans and the White House. The latter wants to limit the aid to $1.5 trillion.
What’s Ahead for Bitcoin
The latest round of uncertainty led by prospects of an abnormal US election and lack of stimulus forced investors out of Bitcoin and move their capital into cash.
Nevertheless, the cryptocurrency displayed extremely positive on-chain fundamentals, according to data provided by Glassnode. The blockchain analysis platform measured BTC/USD based on its network health, liquidity, and market sentiment, ruling out that the pair is healthy.
“Meanwhile,” it added, “the price of BTC is still closely tracking the stock market, with Thursday’s price drop coinciding with a drop in stock market futures […] Investors should remain cognizant that, with the recent news of Trump’s Covid-19 diagnosis and the uncertainty this brings, the near-term outlook for stocks is unclear.”
Meanwhile, Konstantin Anissimov, Executive Director at CEX.IO, reiterated the same in his statement to BlocDesk, adding:
“BTC’s ability to break out of $11,130-$10,330 range will decide its price action. On the upside, it would likely aim for the $12,500 resistance level, but if sell orders begin to pile up, Bitcoin could plunge to $9,500.”