Bitcoin (BTC) starts some other calendar week aiming for $19,500 and beyond equally crunch fourth dimension for Brexit meets mass U.S. coin printing.

Cointelegraph takes a await at the price factors at stake for Bitcoin this calendar week every bit shaky $xix,000 support remains in play.

Bitcoin CME futures hourly nautical chart. Source: Tradingview

$7 trillion money press?

The more controversial elements of U.S. President-elect Joe Biden's future tenure are already becoming clearer — and it'south good news for Bitcoin.

As his inauguration edges closer, Biden has already said that he plans a $7 trillion recovery packet to tackle the touch on of coronavirus. This would add together a huge new chunk of debt to the already huge mount that the U.South. has accrued this yr.

Confronting the backdrop of an already weakening dollar, the U.S. could thus confront a stiff cocktail of dangerous economic factors driving downward wealth. The appeal of a safe haven has thus never been so real.

"We had a horrible time in 2008 because of likewise much debt, and since 2008, the debt everywhere has skyrocketed. Nosotros can't even count how much the debt is upward," Jim Rogers, co-founder of the Quantum Fund with George Soros, said at an investment summit concluding calendar week quoted by Reuters.

"If Janet Yellen is the next Secretary of the Treasury, she loves to print and spend money."
Federal Reserve balance sheet historical chart. Source: Federal Reserve

As Cointelegraph reported, the strength of the dollar is predicted to autumn further in 2021, something that has traditionally buoyed Bitcoin. The greenback is already at its weakest against a basket of trading partner currencies since April 2018.

As an indication of the direction the U.S. is headed, meanwhile, Preston Pysh noted the opposing management of U.S. debt versus M2 money velocity.

"Check out the disparity on these 2 charts -just in 2020 solitary," he mentioned to Twitter followers.

"A growth in M2 money supply by +22.five%. Velocity of money Down by -20%. Printing is nesting itself into bonds and stocks. It's causing massive destruction of the centre class. You might want to checkout Bitcoin."

Stimulus coming only without checks

New debt may come up a lot sooner than fifty-fifty Biden can summon. Equally Senators began hinting on Sun, a new coronavirus stimulus package could announced as soon as Mon.

Subject field to voting, the bill would come with a price tag of nearly $1 trillion and provide "targeted relief," Democratic Senator Marker Warner of Virginia told CNN.

"I remember we have got the meridian line numbers washed. Nosotros are working right at present on language and so that we can have — as early as tomorrow — a piece of legislation," he claimed.

The new stimulus bill has seen little progress despite promises from Treasury Secretary Steven Mnuchin months before. A second stimulus check of $i,200 for eligible Americans, however, no longer features in the latest proposals.

The first $1,200 stimulus check from mid April would be worth about $iv,000 if invested in Bitcoin at the time.

United kingdom meets its Brexit Waterloo

It's brand or break for the United kingdom of great britain and northern ireland and the Euopean Matrimony agreeing a Brexit merchandise deal.

After many a delayed borderline and last-ditch efforts to resolve their differences, the two sides now take that time has run out and that merely a matter of days — or less — stands between the U.Thou. leaving with a deal or crashing out of the East.U.

"We continue calm as ever and if there is all the same a way, we will meet," the East.U.'s chief negotiator Michel Barnier told reporters over the weekend.

The pound was suppressed on Mon as uncertainty took hold, and a surprise lack of a trade bargain would automatically shave off more than of its value, analysts said last calendar week.

As with any major geopolitical event, the potential for Bitcoin to turn a profit briefly from the shockwave remains, this likely to come later on Mon.

As Cointelegraph reported last week, Nigel Farage, formerly the caput of the pro-Brexit U.K. Independence Political party, described Bitcoin as the "ultimate anti-lockdown investment" in reference to London's harsh restriction of individual freedoms over the coronavirus.

Buzzword institutional FOMO

Within Bitcoin, attention remains stock-still on whether more "fearfulness of missing out," or "FOMO," from institutional investors will run into more mass buy-ins and a squeeze on the supply.

Fifty-fifty mainstream media is entertaining the idea of a price transformation thanks to large-volume players entering, something which is all the more possible thanks to the Federal Reserve propping up equities markets and creating artificial competition.

Grayscale, the investment giant with over $10 billion in Bitcoin assets under direction solitary, would be the first manufacture heavyweight to benefit under such circumstances.

"Institutional investors are keen on portfolio construction in the wake of Covid, and the means they need to reposition themselves given how governments have injected stimulus into the organisation," managing manager Michael Sonnenshein told Bloomberg.

Signs that more cash is coming to Bitcoin already abound. Just terminal week, Guggenheim revealed that it had reserved the correct to buy into Grayscale'southward Bitcoin Trust via its $5.3 billion Macro Opportunities Fund.

Regardless of who and how, institutional FOMO places more pressure on the dwindling Bitcoin supply, with toll rises versus other assets the but logical outcome.

BTC 90-day correlation vs. Golden, VIX, SP500, USD. Source: Cointelegraph Markets/Digital Avails Data

Henri Arslanian, Global Crypto Leader at PwC, summarized the situation to to Bloomberg:

"The question investors will ask fund managers volition gradually switch from 'why did you invest in crypto?' to 'why have you not yet invested in crypto?'"

BTC/USD at crucial resistance

Focusing on brusk-term price activeness, meanwhile, Bitcoin is at a crossroads, Cointelegraph Markets annotator Michaël van de Poppe says.

In his latest marketplace update on Mon, Van de Poppe noted that at $19,200, BTC/USD could either retest $xix,500 or try to break lower during trading.

Both levels are significant. A shot above $19,500 would open up a clear move to expand on terminal week's all-time highs, perhaps with a top as high as $21,000.

Conversely, interruption beneath $18,600 again and real support may only sally much lower — possibly beneath $17,000.

"Overall… we are in range resistance, which ways no entries until the proceeds of the level," he summarized while waiting for $19,500 to appear.

Van de Poppe also noted that CME futures gaps, including a giant $ane,300 void from last weekend, remain a major nearby nautical chart characteristic. A drop to just below $17,000 would fully "fill" the larger gap.