There is huge volatility and slowdown in the global financial market which has affected the global economy severely. This has been due to the huge spread of coronavirus across the world. Concerning this situation, the U.S. authorities have earlier announced a stimulus package for millions of its taxpayers. Recently, it has been revealed by Coinbase crypto exchange that most Americans who received the stimulus checks are investing it in the cryptocurrency.
As reported by Coinbase this huge rise in the same amount of deposit is quite interesting. Brain Armstrong, CEO of Coinbase, saw a huge number of deposits of $1,200. Most of the deposits are of this amount only and this is the same amount that the U.S. government has allotted for each stimulus check.
This rise in deposits came when Bitcoin is already struggling to maintain its price above $7,000. Even though there has been huge volatility in the crypto market, people are still showing their hopes towards bitcoin. This reinvestment in bitcoin is quite positive and shows the high hopes of the investors in bitcoin.
According to what Coinbase has reported, this will lead to a rise in the market capitalization of the digital asset including bitcoin at top. As bitcoin is seeing some huge investment despite the market crash and economic crisis, it will have a bright future ahead.
Due to the coronavirus pandemic, people are moving more towards digital currency leaving fiat money behind. The central bank is also indicating a huge decrease in printing money. This less printing is to reduce the spread of the virus. Another major factor towards the increased interest in the crypto market is faster transfer. The crypto assets offer huge amounts of transfers quickly and securely as well which is attracting more people towards it. Due to these certain reasons, there is a huge increase in interest towards bitcoin even during such a huge crisis.
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