The US financial markets initially witnessed a positive rally when the US lawmakers announced a massive $2 trillion stimulus package. But markets on Wednesday plunged after US Senate and the White House reached a deal of $2 trillion stimulus package. Bitcoin also failed to gain positive momentum. The markets plunged due to the coronavirus pandemic and other viruses like Hantavirus that emerged from China.
US Senate and White House pass a $2 trillion coronavirus stimulus bill.
Democrats had earlier voted against the bill twice, citing that the bill bails out rich corporates and is inadequate for the working-class Americans. Dow Jones and S&P 500 initially surged on the stimulus package news but later plunged. The $250 billion has been set aside for direct payments to individuals and families, while $350 billion will be used for small business loans in the massive stimulus package.
Bitcoin is at a breakdown point of $6,550.
At the time of writing, bitcoin is trading just above the $6,500 mark, which is the breakdown point for the leading cryptocurrency and daily 20-day moving average level. A break below this level could lead to a huge downside move for bitcoin. The short term prediction for bitcoin is still quite bearish. The price is expected to fall below the $5,000 mark in the coming days.