On September 10, the US Senate rejected a new stimulus proposal that did not include a new $ 1200 check round. However, this increases the chances of a new proposal approving separate checks and can act as a catalyst for Bitcoin (BTC).
Why was the incentive offer rejected, and why might it be good?
The new proposal, called the Lean Stimulus Act, was rejected in the Senate by 52 votes to 47. Republican Senator Rand Paul, along with Senate Democrats, blocked a new package that did not include an estimate of $ 300 billion in stimulus.
Both Republicans and Democrats have called for a new round of direct incentives in recent months. When the bill was introduced without the support of small businesses or individual assessments, the Senate rejected it.
There is a high probability that the Senate will adopt the direct payment bill by the end of the month. If the account is issued without direct payments, it will not have a major impact on the shares to which Bitcoin is closely linked after the March accident.
In May, data compiler Envestnet Yodlee found that many Americans used their bonus checks to invest in stocks. At the time, Jodley’s chairman Bill Parsons said:
“It’s pretty clear that there’s a clear connection between Covid and the people they sign up with their money.”
Coinbase CEO Brian Armstrong also shared data on people who bought bitcoin with their checks.
The $ 1200 deposit rate since April has increased significantly from 0.1% to 0.4%, almost quadrupling.
However, if the revised package is implemented in the future with individual reviews, it could put pressure on the stock market and the bitcoin price again.
Bill Hoagland, executive director of the Center for Bipartisan Politics, said the Senate could consider a new proposal by the end of September. He said:
“If FEMA money is lost, it will even cut the $ 300 now saved. That may be the only spark I can see urging Republicans and Democrats to do something, perhaps before the end of the month. ”
Economists say that there is a need for direct surveys
Economists are pushing the government to offer a new round of direct payments because of their efficiency.
Natalie Foster, co-chair of the Economic Security Project, said that direct payments are the fastest way to provide financial support. Foster told CNBC:
“Correct checks are the most effective and fastest way to support American families. We’ve been receiving a one-time payment of $ 1200 for the last six months, and that’s not enough. ”
The Senate will hardly approve the proposal unless it includes individual assessments and a small business package.
When it comes to technical stocks and bitcoin prices, the Senate’s pressure for further direct payments could be an incentive for growth.