A U.S. Stimulus-Backed Rebound Could Fuel a Bitcoin Bull Rally: Here’s Why

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Bitcoin kicked off this week with a modest move higher, rising 0.78 percent as of Monday’s close. The gains followed a sharp sell-off last week as traders pinned their hopes on a new stimulus package by the Federal Reserve and the U.S. Congress. The sentiment helped S&P 500 pare part of its last week’s losses. The U.S. index and Bitcoin have formed a short-term positive correlation. Bitcoin’s rebound from last week’s low shed lights on its growing dependency on macroeconomic fundamentals. The benchmark cryptocurrency on Monday surged 0.78 percent to $9,184.45, a move that aptly tailed the recovery sentiment in the S&P 500. Like Bitcoin, the U.S. index climbed on Monday to pare its recent losses, rising 44.19 points, or 1.5%, to 3053.24. Speculative Optimism S&P 500’s Wall Street peers, Nasdaq Composite and Dow Jones, also inched higher by 2.3 percent and 1.2 percent, respectively. The Wall Street Journal credited…

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