Cointelegraph Consulting: New stimulus checks may push Bitcoin price above $11K

The latest research by Cointelegraph Consulting suggests that financial stimulus packages bolster the stock market and cryptocurrencies.

The first round of checks worth $1,200 were deposited directly into bank accounts on April 11.

Now, Washington is debating whether to issue a second round of checks.

The growth in the prices of these assets may be explained by the huge financial stimulus packages provided by governments around the world.

The U.S. dollar money supply rocketed from $4 trillion in the beginning of 2020 to $5.5 trillion as of the middle of the year.

In fear of an inflation outburst, the demand for the store of value assets increases.

Cointelegraph Consulting's research report shows that the volume of stimulus itself is not the only factor impacting capital market growth.

Instead, the financial behaviour of U.S. citizens has become much more conservative, and the household saving rate has doubled during the crisis from 7% to 15%. Although some citizens used state support checks to pay down debt, the indebtedness of U.S. households is still very high, which could make long-term price appreciation of traditional and alternative assets difficult to sustain.

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All past reports by Cointelegraph Consulting are also available on Cointelegraph.com.