22 Apr Bitcoin decoupling narrative gathers strength
- Bitcoin is decoupling from the traditional markets.
- BTC/USD is in retreat after an unsuccessful attempt to move above $7,000.
The US Senate passed a new stimulus package on Tuesday to provide financial support for small businesses hit by coronavirus lockdown, fund more extensive testing and support hospitals. Notably, a few weeks earlier, the U.S. lawmakers approved$2 trillion federal stimulus program. Trillions of dollars printed and poured into the financial system will result in growing inflation pressure and dollar devaluing, which is often considered as a positive signal for Bitcoin and other digital assets.
However, Bitcoin’s reaction is muted as it continues wobbling around $6,900. The initial sell-off on Monday caused by oil price collapse was short-lived and triggered new wave of “decoupling” discussions. Notably, such traditional safe-haven assets as gold and U.S. Treasuries were also under pressure, while the US Dollar gained ground.