The United States government had proposed issuing COVID-19 stimulus to help residents during this time of the pandemic. Interestingly, sentiments by Industry players, that this proposal is bullish for cryptocurrencies are playing out well.
A recent data shared by Brian Armstrong, the Chief Executive Officer at the US-based Coinbase, suggests that some residents in the country might be purchasing cryptocurrencies using their COVID-19 stimulus check.
The US $1,200 COVID-19 stimulus
In a flashback, the American government planned to provide a $1,200 check to citizens, in an effort to bring relief to the hardship caused by the coronavirus outbreak. Notably, several businesses had to close down amid the virus, which left several people without any income.
The stimulus package also covers low-income earners in America, who may not file for tax returns. Also, parents will receive another $500 of each child they possess.
Stimulus check for cryptocurrencies
Armstrong somewhat suggests that a fraction of US residents may be buying cryptos with the government money. In the report, he noted that the number of deposits and purchases made on the value of $1,200, had increased by four times recently.
The stimulus check is likely to be the force behind the upsurge, given that the worth of rising deposits and purchases is precisely the same amount proposed by the US government in their coronavirus relief package.
Stimulus predicted as a big win for cryptocurrencies
Another reason worth mentioning is the coincidence on time of the stimulus and the buys. Armstrong further noted in the report that the upsurge for the deposits and purchases worth $1,200 corresponded to the period where the American government began sending the stimulus to the residents.
The development does not come as a surprise to some industry participants. Many people had speculated upon the stimulus announcement that it would be a big win for cryptocurrencies, especially Bitcoin. Wayne Chen, the founder of Coincurve, already said that the stimulus could move up the Bitcoin market.