Bitcoin has stagnated over the past few days after peaking at $19,950 at the start of December. It currently trades for $18,200, stuck in a consolidation range between $18,000 and $19,500.
Some have begun to fear a correction due to technical and on-chain trends. As reported by CryptoSlate previously, addresses affiliated with whales have begun to increase their deposits to exchanges. Other analysts have also noted that certain mining pools have begun to sell off holdings.
But, the fundamentals of Bitcoin are seemingly stronger than ever as the world’s governments and central banks continue to opt for money printing to bail out the sinking economy.
Bitcoin bull case still strong amid unprecedented monetary stimulus
, co-founder of Gemini, recently pointed out that the Bitcoin bull case is being validated as the European Central Bank pushes for further stimulus.
Due to a once-again worsening pandemic and a slower-than-hoped vaccine roll-out, the world’s central banks are taking evasive action to try and prevent the pandemic from affecting the economy even further.
As Winklevoss notes, the ECB in itself is currently pursuing an increase of its “bond-buying program by an equivalent of $2.2 trillion.” $2.2 trillion is approximately 10 percent of the European Union’s aggregate GDP as of last year.
Further, this adds to the more than $1 trillion of stimulus it already implemented earlier this year.
In the U.S., there are reports of an imminent fiscal stimulus bill of approximately $1 trillion, which may include another widespread distribution of cheques to a majority of American families.
Many see these moves as a validation of the Bitcoin bull case as it shows the fickleness of fiat money compared to hard money, such as BTC.
Wall Street taking notice
This push for further monetary stimulus to the tune of trillions of dollars has made Wall Street take notice. Prior to this year, there were actually very few large-name investors and bulge bracket banks involved in the space.