$ 1,200 Aid Checks Flocking to Bitcoin in the USA.
The US Government distributed $ 1,200 aid checks to more than 80 million people last week. The payment made to be deposited directly into bank accounts was made for the basic needs of citizens affected by corona virus, such as food and electricity bills, and the continuation seems to be the future. But apparently Americans may have used their aid checks to buy cryptocurrencies rather than spending them on Walmart, Amazon, or anywhere.
Help Checks Flow to Bitcoin?
Coinbase CEO Brian Armstrong tweeted that he experienced a sudden increase in the number of deposits worth $ 1,200 in the stock market early Friday. By mid-April, about 0.1 percent of total purchases and deposits were $ 1,200. When the aid checks were distributed, $ 1,200 purchases rose suddenly, and exactly doubled to 0.4 percent.
Of course, it is not possible to say with certainty whether all these deposits are deposited by US citizens looking for a safe haven for government-issued money. The chart does not indicate what the split between purchases and deposits is, so there is a possibility that some customers have sent their money to exchanges for Bitcoin purchase. It is also difficult to say whether these deposits even come from the USA.
But despite an increasing unemployment rate, most people in the U.S. are still working and still receiving money. Many people who are financially safe may have decided to invest rather than spend their aid checks. Investors do not only go to Coinbase with incentive money. A Binance.US spokesman confirmed that they also saw an increase in $ 1,200 deposits. “People seem to have invested exactly $ 1,200 in Binance.US in the past few days.”
Did cryptos offer the opportunity to buy?
In addition to the evidence, last Thursday also went down to Binance as a day when the increase for USD deposits was the biggest increase. Crypto prices took a hit when COVID-19 outbreak fears peaked in March, but it has been seen that there has been a recovery since then. Some US investors may have considered that this trend creates a buying opportunity in a new class of assets, with other assets such as record low interest rates and equities reported, with inanimate returns.