Bitcoin has recouped losses as the price was hovering near $54,800 on March 9. In a sense it has surpassed the peak price of $54,615 on February 23 on the back of stimulus package from the US government. Without doubt, bitcoin rally above $54,000 is because of the $1.9 trillion stimulus package announced by the US Senate. The stimulus package is expected to drive economic recovery across sectors in the US as it provides direct benefit transfer to individual US citizens, unemployment benefits, and support to state governments. A similar effect was visible on cryptocurrencies and stocks as well when the US Congress had passed the $484 billion Covid relief package in April last year. Likewise, the $900 billion second stimulus announced in December was followed by the jump in bitcoin prices from over $23,000 to nearly $29,000 on December 31, 2020.
There is a huge amount of demand institutionally as well as private wealth management space. The
US-based provider of technology and investment solutions for bitcoin NYDIG had announced $200 million fundraising led by strategic partners Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual, Soros Fund Management, and FS Investments. Norwegian conglomerate, Aker ASA engaged in offshore fishing, construction, and engineering had announced its plans to induct bitcoin into its business operations.