- Bitcoin started trading cautiously on Monday as US lawmakers struggled to complete an incentive plan after its end on July 31.
- The critical difference between Democrats and Republicans remains the $ 1,200 aid offered for the unemployed.
- One final warning could put more negative pressure on the US dollar, which could help increase Bitcoin.
Bitcoin started on a cautious note on Monday, and investors are finalizing the next incentive bill.
Democrats and Republicans have revealed rival versions of the aid package. One of the key points was about unemployment benefit. Republicans offered to cut the federal increase to $ 200 a week. However, Democrats want the Assembly to maintain the old level of $ 600 a week of relief.
“We came for 600 dollars. America has a $ 200 recommendation that doesn't meet the needs of working families, and this is obviously a disdain, ”says House Speaker Nancy Pelosi. “They say,“ They really don't need it. They just stay at home because they make more than $ 600. ”
(Embed) https://www.youtube.com/watch?v=sJFtkxwVWlY (/ embed)
Meanwhile, Treasury Secretary Steve Mnuchin argued that his administration was concerned about the debt burden following the second incentive package.
"There is a clear need to support workers and support the economy," said Mr. Mnuchin. "On the other hand, we have to be careful not to accumulate huge amounts of debt."
The forecasting of a new incentive bill kept bids of safe haven assets like Bitcoin higher. The cryptocurrency rose approximately 1 percent earlier in London on Monday and traded at $ 11,181. Less than 24 hours ago, he was changing a hand for about $ 10,500.
Bitcoin price is rebounding following Sunday's crash. Source: TradingView.com
However, BTC / USD remained cautious about increasing the uptrend. Part of the reason was the sudden collapse on Sunday, and it turned out that the pair fell about $ 1,500 in a few minutes. The other reason – anxiously – was a stronger US dollar.
The US stimulus dilemma allowed the dollar to breathe a little. After trading near the two-year low, the US dollar index rose by 0.36 percent on Monday, suggesting that some investors have gone into cash security with incentive concerns.
US dollar index rebounds from its two-year low. Source: TradingView.com
Bitcoin and US dollar index have been negatively correlated with each other since March's global market program. Therefore, a stronger outlook for the dollar continued to wrap the other's bullish signals.
As long as the US Congress passes the incentive bill, Bitcoin is likely to come together side by side. Putting the package together until 7 August.
Meanwhile, traders should note the $ 10,500 level as support for Bitcoin to try bullfighting for a stronger dollar.