Bitcoin extended its recovery trend as traders shifted their focus on Joe Biden’s stimulus plan expected later on Thursday, hoping that a generous spending package would pressure the US dollar and boost demand for alternative safe-haven assets.

The US president-elect’s proposal expects to increase the federal deficit by around $2 trillion.

His bill might contain financial support for state and local governments and a direct check payment worth at most $2,000 to American households. Tom Block, Washington policy analyst at Fundstrat Global Advisors, told CNBC that the Thursday bill could also include an extension of the eviction moratorium and “hundreds of billions” in government aid.

Friday’s labor market data, which showed that employers trimmed about 140,000 …