The United States President, Joe Biden, has proposed a $6 trillion budget which might drive BTC’s price to surpass the $40,000 mark. The official announcement will be made on May 28 and will be the largest since the second World War.
The New York Times reported that President Biden has quite high obligations as regards the $6 trillion budget and further plans to increase the allocation to $8.2 trillion by 2031. Recently, Biden had made moves to increase the tax of the biggest companies and individuals in the country. This is in a bid to sufficiently fund the plans he has.
However, this approach isn’t perceived to be a good one as it is likely to place the US in massive debt if loans are sought to fund the budget.
While this is assumed to offer bullish support to Bitcoin, the strength of the dollar has lost about 13 percent against bigger currencies. The recent financial events has made the founder of Pomp Investments, Anthony Pompliano, to decry the proposals of Biden’s government which he believes will hugely affect the economy.
BTC Levels Up to $40,000
The declines in the US Dollar Strength Index (DXY) has increased fears making analysts suggest Bitcoin as a remedy to the increasing debt probability of the United States. The New York Times also refreshed fears after covering the US early morning trading session where DXY fell by 0.01%. Bitcoin on the other hand gained up to $40,000.
Bitcoin, though has faced a critical May, is indicating signs of taking a bullish run. Cryptocurrency analysts believe that BTC might take a short bill run to $43,000 as the BTC/USD trading average has tested its 200 days simple moving average.