- President Joe Biden announced that over $127 billion in student debts have been canceled for 3.7 million Americans.
- Bitcoin enthusiast, Mike Alfred said Bitcoin could benefit from the student debts wiped in the United States.
- Bitcoin peaked at its all-time high in 2021 following the COVID-19 stimulus package by the U.S. government.
Crypto trader and Bitcoin enthusiast Mike Alfred has hinted that the recent moves by the U.S. government may help boost the value of Bitcoin. His statement comes in reaction to a post on X (formerly Twitter) from President Joe Biden on the student loan wipe-out in the United States.
In particular, Biden announced that his administration has canceled $127 billion in student debts for over 3.7 million Americans. This move comes on the heels of increased agitation for the government to take the student loan burden off the citizens.
While the move has garnered varied responses, Alfred pointed out that it is “a big deal,” as Biden mentioned, because it means “Bitcoin will appreciate.” While the lines are not as straight to draw, the statement by Alfred mirrors the implied correlation between the U.S. government’s policies and Bitcoin price actions.
At the height of the COVID-19 lockdowns in 2021, the U.S. government distributed stimulus checks to help its citizens wing the economic hardship of that period. The $1.9 stimulus package included direct payments of $1,400 to citizens and support to companies and businesses.
With little to spend on, the crypto market saw a flurry of capital inflow, with the crypto market notching a historic high. The crypto market capitalization crossed the trillion dollar mark, and the largest cryptocurrency network, Bitcoin, reached its all-time high of approximately $65,000.
While the economic stimulus and the student debt forgiveness are different, they both mean Americans who previously endured financial burdens will have more disposable funds to play around with. That is not to cut out the continued effect of inflation across States in the U.S., which could also impact the people’s spending power.
Elsewhere, the crypto market has lost the steam it gathered over the previous week. Data from CoinMarketCap shows that major cryptocurrencies have declined, and the overall market cap has dropped by 0.40% in the last 24 hours. Bitcoin also recorded a drop in its price, but the token continues to sit above the $27,500 mark.
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