Amid the coronavirus pandemic, the world governments are rushing to maintain calm among the public. The central banks of the world are printing more money than ever to meet the increased funding needs.
Data Suggests Some Americans Using Stimulus Money To Buy Bitcoin
Americans Using Stimulus Money To Buy Bitcoin. Amid the coronavirus pandemic, the world governments are rushing to maintain calm among the public. The central banks of the world are printing more money than ever to meet the increased funding needs. Americans People are being given stimulus cheque’s to
support them while they are at home. This might be giving bitcoin a little boost as far as price is concerned. Data suggests that some Americans are using their stimulus money to buy Bitcoin.
This is something that experts and industry watchers had predicted since the beginning. After the March 12 crash, now known as Black Thursday, bitcoin is cheaper than ever. This might make it more attractive for long term investors as well as hodlers. Data from several exchanges suggests that the recent rise in price after the crash might have been led by retail.
Buy Bitcoin; Coinbase CEO Shares Data
On April 17, the CEO of a popular exchange in the US shared the data about increased demand. According to the
tweet, it seems like a portion of the stimulus money is going towards buying crypto. There was a definite uptick in the demand ever since the government started sending out checks. There is more to the data that further proves that theory.
The value of the buying/deposits is worth $1200. This is exactly the amount of money that the US government is sending. Also, since before the coronavirus outbreak, transactions worth $1200 have increased four times. Although Coinbase CEO’s tweet didn’t mention the theory exactly, we can infer it from the chart he shared. This means that he and his exchange is well aware of this fact.
If this is the case, it might mean two things. People might have more money to spare so they are using the send-outs to purchase crypto. Second, the upcoming bitcoin halving might be making them prioritize crypto over other things. This might be because historically, bitcoin has gone on a bull run post halving. The people might be anticipating this and investing accordingly. If bitcoin behaves anything as it did previously, that $1200 can multiply quickly.
More Cheque’s To Come?
There are no signs to suggest that the pandemic is anywhere near over. Far from it. That means the lock downs may extend even more. This, in turn, means that people might require more money. Already, there are talks that the $1200 was not enough for most people to even meet basic demands. Also, there have been serious talks within the government to hand out more money.
If that happens, bitcoin and other cryptos might see even more demand. It could also happen that people might use the second round of funding to buy just the essentials. Bitcoin is just around the corner and things are beginning to heat up for the king of crypto. Time will tell how the current situation unfolds. Many believe that the perfect storm is in place for bitcoin to skyrocket in the coming months.