Can Stimulus Checks Pump Bitcoin Price Upward?

The US second stimulus package is coming on Monday as confirmed by the economic advisor. As Bitcoin has already started its move upward, the stimulus package will make it more bullish, claims analysts in the cryptocurrency community.

In an interview with CNN, economic advisor Larry Kudlow says that a stimulus check of $1200 will start distributing among the US citizens from Monday. “The check is there, the reemployment bonus is there. The retention bonus is there. There will be breaks, tax credits for small businesses and restaurants,” he added.

Return over 40% on First Stimulus Payment

According to an estimation, the Americans who purchased BTC from their first check is now having over 40% return on $1200.

However, many citizens have not yet received their first payment, reports Newsweek as the US Treasury started distribution in late March. And Steven Mnuchin, the Treasury Secretary, said earlier that the second phase of the stimulus package will start in August.

The basic purpose of the payment is to help citizens in handling economic situations with ease as Coronavirus pandemic has created a lot of problems, including unemployment.

There is evidence that many people had used their first payment in purchasing cryptocurrency. For instance, Brian Armstrong, the CEO of US-based cryptocurrency exchange, unveiled analytics that showed that deposits and buys worth $1200 have been increased significantly.

The former head of product at Messari Qiao Wang believed it is “Stonks, gold, & crypto stimulus package.”

US Banks can Store Cryptographic Keys

The US watchdog for banks has also permitted banks to hold private keys of digital assets’ capital, which can also inspire individuals to buy more BTC. Preston Byrne from corporate Anderson Kill said:

“Crypto lending and saving may be how the payment of interest becomes a thing again. Banks are desperate for yield. The faster they move the more market share they’ll obtain. Will be interesting to see who moves first and how quickly they go about it. But really. Getting out of banking law and into crypto law in 2013 was the best career move I ever made. So much growth yet to come.”

As checks are close, the Bitcoin price has already soared and even surpassed the psychological level of $10,000. Currently, it is trading at $10,268 with an increase of 6.21% in the past 24-hours.