Bitcoin continued its upward trend over the weekend with prices near $11,500, according to CoinDesk, with the spike likely tied to the possibility of more U.S. stimulus funds.
That’s the first time in a month the price has been that high, CoinDesk writes, with the last time it happened being Sept. 2.
On Friday (Oct. 9), the White House extended an offer of a $1.8 trillion stimulus package that President Donald Trump said was a move to “go big” after stimulus negotiations have been tied up for months.
Trump’s proposal would include aid for airlines and small businesses, two sectors which have been especially damaged by the pandemic.
Bitcoin has fluctuated during the pandemic, setting a record for the most days at a time closing at over $10,000 with 63 days straight, PYMNTS reported. The range was between $10,000 and $12,500, according to CoinDesk, and at that time, the 180-day volatility rate was also low.
But then in October, the coin’s value reached a 23-month low of 0.028, the lowest it had been since November of 2018. Bitcoin’s lag was seemingly unrelated to the tumultuous current events of the last few weeks, which included charges filed against the founders of BitMEX by the Department of Justice for flouting KYC requirements.
A common criticism of Bitcoin is its volatile nature, with the fluctuations in value long making it a source of skepticism for some. But Michael Saylor, CEO of Virginia-based software firm MicroStrategy, recently said he thinks Bitcoin is “less risky than holding cash, less risky than holding gold.”
He forecasted that the asset inflation would spike more than 20 percent annually. That would have the effect of dampening purchase power, which would even the volatility out.
MicroStrategy was the first public firm to invest most of its treasury in Bitcoin earlier this year, according to reporting by Bloomberg.