Mike Novogratz suspects Bitcoin’s recent upward price action is a result of the U.S. government’s corrective economic measures.
Multi-millionaire and former hedge fund manager, Mike Novogratz, recently posited government spending around coronavirus efforts may be the cause of recent mainstream and crypto market rallies.
“Household Income in the USA could actually be up this year even though we could have 25% unemployment,” Novogratz said in a May 6 tweet, adding:
“That is unprecedented.Thanks Uncle Sam and Chairman Powell. Helps with social unrest, might explain the retail bid to the stock market, and certainly helps make the BTC case.”
It is unclear exactly what Novogratz meant in his tweet, and which aspects have impacted market prices. Cointelegraph reached out to Novogratz for additional details, but received no response as of press time.
The coronavirus pandemic has caused mayhem
After the coronavirus made its way to North America, the U.S. government halted business operations while urging folks to stay home in an attempt to slow the virus’ spread.
A short time later, mainstream markets reacted by entering free fall mode. Weeks of bearish price action followed. At the same time, Bitcoin’s price took a severe tumble, dragging the whole crypto market with it.
Markets have since rebounded
In the weeks following the March crash, markets posted a number of additional red days before carving out a noticeable recovery. Amid the recovery, the U.S. government took a number of actions in an attempt to prop up the struggling economy.
These solutions have yielded massive money printing, with a main $2 trillion dollar stimulus package in play. The package included essentially free money sent to citizens and businesses to combat expenses during layoffs, among other components.
Rising markets logically do no go hand in hand with high unemployment numbers. Mainsteam and crypto markets, however, have surged amid rising unemployment numbers.
Bitcoin in particular has posted a dramatic recovery, shooting up over 130% from its March price valley.