Can The $1,400 Stimmy Bring Bitcoin Even Higher?

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Last Updated on 17 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Every few weeks in 2021, it seems that Bitcoin is setting a new all-time-high. From $30k in January to $50k in February and now $60k in March.

As the most popular cryptocurrency is still the main driver of the digital payments market and thus the biggest attraction to get people to visit a crypto exchange, we wonder which catalysts are present at this moment, which can take it even higher?

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Institutional and retail

First off, it is clear that although the “boomer analysts” keep screaming bubble, Bitcoin is having an incredible 2021 so far. This is mostly due to the inflow of institutional money since the end of October 2020, which is bringing along retail investors for the ride as well.

The subsequent investments of Square, PayPal, MicroStrategy and mostly Tesla have created a clear boom in crypto interest. Although we shouldn’t forget about the all-important social media influencers that are rooting for Bitcoin and crypto all the time (thank you Pomp, CZ, Charles Hoskinson and PlanB for example), the hype surrounding any of Elon Musk’s tweets over Bitcoin is enough to pump it by 10% at times.

Also remember that institutions are much less sensitive to any spur of the moment sentiment and will HODL their crypto positions longer due to the impact of long term capital gains tax.

Stimmy

Type in Stimmy and Bitcoin into a search engine and learn where a lot of the $1,400 stimulus cheques that the Biden administration are sending out will be going.

Coinbase and other exchanges in the US know very well that whenever those cheques are being sent out (timed to be received as from next weekend), the price of Bitcoin and other cryptocurrencies is heavily influenced as a result.

The Financial Times admitted the factor in a piece they did at the beginning of the year when the US government sent out $600 cheques.

Fear and greed

Lastly, the simple FOMO (fear of missing out) fact of human behavior is enough to make sure that even though the Fear and Greed index of Bitcoin is at this moment already quite high, people will just try and get into the frenzy whenever Bitcoin has another good day.

During the last bull run, the Fear and Greed sentiment of Bitcoin was consistently in the 90s. This time round it’s a bit lower than that, but we do expect it to top again should Satoshi’s coin indeed reach $100k in a few weeks or months.