The $ii trillion economic stimulus parcel the United States Congress passed on March 26 might not crusade the Bitcoin (BTC) market to skyrocket just yet, but investors could see modest, gradual improvements starting in 2022.

Wayne Chen, CEO of Interlapse and founder of virtual currency platform Coincurve, spoke to Cointelegraph on Wed regarding the outlook of Bitcoin following measures to assist the U.S. economy recover.

Stimulus parcel targeted at those without disposable income

Even in the midst of a global pandemic, many crypto traders are expecting Bitcoin to reach all-time highs before 2022. Online searches for cryptocurrencies have increased equally investors may be shying away from traditional markets while stuck at home, just this does not necessarily mean crypto newbies and veterans will exist using their $1,200 checks to purchase Bitcoin.

Role of the reason for the stimulus package is to help those who accept lost their sole source of income or had it substantially reduced in the midst of measures to fight COVID-nineteen, including being unable to come up to work.

Chen argues that this targets a segment of the population who would want to save "to prepare for the worst." Investing in Bitcoin may exist on the backburner:

"I think people volition generally still be holding crypto fifty-fifty subsequently the stimulus bundle… I don't think an extra [chiliad dollars] of extra pay into their bank account is going to trigger a huge buy activity in the whole cryptocurrency market."

Why aren't more than investors flocking to Bitcoin?

Though the stimulus package will provide income to all segments of the U.S. population, the reactions might end up being the same as the economy potentially moves into a recession i.e. people will save, non buy. This applies to both cryptocurrencies and traditional markets, which accept taken huge hits in March.

While Chen is optimistic about the economy as a whole, he believes the impact on Bitcoin volition exist minor, rather than the predictions of some anticipating highs over $27,000:

"...it will be very modest. Information technology'due south going to be very gradual. Information technology's not a lot of money that people [are getting]. People are going to exist saving for the longer term… I don't think it'southward going to ship Bitcoin to an all-time high."

Chen's firm Coincurve recently announced the acquisition of BuyBitcoinCanada.com, to become Canada'due south leading virtual currency platform.