- Senate Passes $1 Trillion Infrastructure Package
- Inflation In Germany At Highest Level Since 1993
- Estimates Of 100 Thousand Dollars In Bitcoin Are On The Agenda Again
Senate Passes $1 Trillion Infrastructure Package
In a rare bipartisan vote in politically combative Washington, the United States Senate approved a $1 trillion infrastructure package.
After months of deliberation, the $1 trillion infrastructure spending bill was passed in the Senate yesterday by a vote of 30 to 69. The future of the infrastructure bill in the US House of Representatives, which includes the largest investments in roads, bridges, airports, and canals in decades, is uncertain.
While the US Senate approved the 1 trillion dollar infrastructure bill yesterday, the talks on US President Joe Biden’s 3.5 trillion dollar spending plan, which started right after that, entered the second day.
Senate Democrats focused on the budget bill covering the spending directive for the next $3.5 trillion package, including articles on building public kindergartens, affordable housing, and climate-friendly technologies.
Democrats plan to pass this package in a few months through a so-called “budget consensus” process that allows them to pass the bill with a simple majority vote.
The “vote-a-rama” process, which gives senators in the Senate the opportunity to make changes on the budget bill, started yesterday. This process continued earlier today. Negotiations could take days unless party leaders agree on a shorter timeframe.
President Biden praised the 19 Republicans who voted in favor of the $1 trillion infrastructure package. Still, it’s unclear how the package will be passed in the House, where Democrats have a narrow majority.
Inflation In Germany At Highest Level Since 1993
For July, consumer price index data, announced by Germany’s Federal Statistical Office, showed that the index increased by 3.8 % annually in July. Inflation in the country reached this level for the last time in December 1993.
The monthly change in the index increased by 0.9 %, in line with expectations.
While goods prices in the country increased by 5.4 % annually, the increase in energy prices was 11.6 %. Fuel prices for heating increased by 53.6 %, motor fuels by 24.7 %, natural gas by 4.7 %, and electricity prices by 1.6 %.
The CPI had fallen sharply in July last year to negative levels after the temporary VAT reduction – from 19% to 16% and from 7% to 5% for the reduced rate – introduced that month in Germany for the entire second semester to promote consumption and help counteract the impact of the pandemic.
This rebound in July 2021 was expected, as the VAT cut a year ago led to a reduction in prices for many products, said Christoph-Martin Mai, an inflation expert at Destatis.
“This increasing effect on prices is increased by the particular evolution of certain products, especially energy,” he added.
Thus, goods, in general, became more expensive as a whole with 5.4% year-on-year above the average, especially the prices of energy products, which with 11.6% were significantly above the inflation rate.
Estimates Of 100 Thousand Dollars In Bitcoin Are On The Agenda Again
While Bitcoin prices rose 50 percent from the $30,000 bottom level in July to $45,000, analysts’ estimates of $100,000 resurfaced.
The relentless recovery of Bitcoin from June lows is causing the “$100k” predictions to be re-voiced. The largest cryptocurrency is heading towards weekly gains for the fourth week in a row, gaining 50% from its July low.
Bitcoin, which is horizontal in the morning hours, finds buyers at $45,600. Still, agenda items such as China’s ban on mining, which led to the decline of Bitcoin, and the US’s preparation for regulation, remain up-to-date.
Mike McGlone from Bloomberg Intelligence pointed out that there is still room to reach the peak level achieved this year, while Fundstrat Global Advisors Co-Founder Tom Lee predicted that $100,000 could be seen in Bitcoin by the end of 2021.
“We think Bitcoin will rally strongly if it breaks its 200-day average,” Lee said in a note.
While Bitcoin has managed to close the last two days above its 200-day moving environment, if it closes above the average today, it can find support at this level and continue its rise.
To be noted, AMC, the world’s largest cinema chain, announced in a statement that it would accept payment with Bitcoin for movie tickets. The company’s CEO, Adam Aron, said the company’s new investors are “enthusiastic” about crypto.