President Donald Trump’s administration is planning to start delivering the second round of economic stimulus checks to American citizens. Many used their first round checks for crypto investments; there are chances that it might happen again.
White House economic adviser Larry Kudlow confirmed to CNN’s Jerry Tapper on July 26, 2020, that Americans will receive another $1,200. The money that will be disbursed beginning August is part of a roughly $1 trillion stimulus package first announced on July 23. The checks are the government’s way of easing the economic hardship caused by the coronavirus pandemic.
Depositing $1,200 Increments
The ongoing coronavirus pandemic has caused job losses, and millions of Americans are struggling to meet their basic needs. The government issued the first round of checks in late March this year where every citizen received $1,200. Surprisingly, circumstantial evidence shows that a decent number of Americans decided not to use the money to buy groceries and pay bills. Instead, they choose to invest their checks buying cryptocurrencies and especially bitcoin.
Coinbase CEO Brian Armstrong tweeted on April 16 a chart that shows a spike in $1,200 deposits. The financial columnist Paddy Baker explained that a representative from, Binance US also noted that people have been depositing $1,200 increments. Binance spokesperson stated:
“People do seem to have deposited exactly $1,200 into Binance US in the past couple of days.”
Invested Their Entire Amounts
Americans who used their entire $1,200 stimulus checks to buy bitcoin have seen an over 45.5% return on investment with bitcoin surpassing the $10,200 mark. Having invested $1,200 in April, the value of their money stands at $1,750 as at the time of going to press. Many members of the Reddit crypto community shared their plans to invest their entire amounts of the checks once again. There are chances that this information is part of what is driving the price of Bitcoin up. A Reddit user Limited-Visibility wrote:
“Straight to the BTC, straight to the cold storage wallet.”
While rapierce0238 stated:
“What I do get will go straight to Bitcoin, just like last time.”
Invest Second Stimulus Checks
The news that every American resident will receive $1,200 would once again as a stimulus package happened hours before a 3.1% BTC price surge to $10,249 during the weekend. The king of crypto’s value went past $9,500 as soon as U.S. officials announced the stimulus package on July 23, 2020, to break the long volatility stretch between $9,000 and $9,500. Many are planning to invest in bitcoin, while others considering it after seeing the earnings if the first investors. There are all indications that the second stimulus package could see more people putting their upcoming stimulus checks into cryptocurrency.