A look at recent data suggests that a portion of U.S. citizens may be spending their coronavirus stimulus checks on buying Bitcoin (BTC).
According to a chart published by Brian Armstrong, CEO of Coinbase, there has been a four-fold spike in deposits and buys worth $1,200 during this period, with the amount mirroring the exact value of the stimulus cash from the US government.
While Armstrong doesn’t explicitly state this, many believe the numbers could be from the exchange’s data.
This upsurge in $1,200 deposits to buy Bitcioin (BTC) could be attributed to the crypto market sentiment as the BTC halving approaches.
The halving which occurs every four (4) years, is currently 21 days away (May 12/13 2020). Following fundamental analysis and historical trends, many anticipate an increase in price pre-halving and a bigger rally months or a year after the halving.
From rational statistics, the $1,200 deposit coincides with about the same time when residents received their stimulus cash as COVID-19 economic relief from the government; and it appears to most likely be the source of the BTC buy funds.
While this is not a certain argument, the current global economic situation could be prompting individuals to seek alternative passive income sources as the pandemic lock-down continues. At this time, about 80 million U.S residents have access to this $1,200 aid.