Data Indicates US Residents are Purchasing Cryptocurrency With Stimulus Payment
Brian Armstrong, CEO of the US cryptocurrency exchange, Coinbase, has posted a chart which indicates that a minute percentage of the country’s residents may be utilizing the coronavirus related stimulus check to invest in cryptocurrencies.
Armstrong’s tweet on April 17 indicates the average value of deposits and purchases has in recent times grown by 400% to $1,200, matching the stimulus payment.
Even though the tweet does not openly indicate that, Armstrong’s designation at Coinbase makes crypto enthusiasts believe that it is the exchange from where the data has been obtained.
The sharp rise in the amount of deposits and purchases, matching with stimulus payment of $1,200, indicates that the government paycheck as the likely origin of funds.
The stimulus payments are aimed at reducing the economic difficulty faced by numerous US citizens who have lost their jobs or seeing a drop in earnings amidst the epidemic.
Several economic activities, including customer-front businesses such as cinemas or restaurants, were shut down across the globe to assist in limiting the Covid-19 outbreak.
— Brian Armstrong (@brian_armstrong) April 16, 2020
These shut downs have caused loss of income source to many.
Even the US residents who do not file tax returns will be supported by the stimulus program. Parents will be paid $500 per additional child.
The need for stimulus checks has increased so much that infrastructure of banks was unable to cope with the request and failed to respond as required. Roughly 80 million US residents will receive government assistance.
Wayne Chen, CEO of Interlapse and founder of cryptocurrency platform Coincurve, stated that the stimulus payment may spark a rally in the Bitcoin (BTC) market.