A lot of Americans are earnestly waiting for the second round of COVID-19 stimulus payments. If history were to repeat itself, then a sizeable portion of that fund will be directed to cryptocurrency. This possibility becomes very likely, especially as citizens who invested their first stimulus payment in bitcoins record over 40% profit following the recent surge in bitcoin's price.
While speaking in an interview with CNN, a member of the Trump's advisory team, Larry Kudlow, affirmed that the administration would be sending another round of $1,200 cheques to Americans, in line with the announcement made on July 23.
But according to a Newsweek report, numerous Americans said they yet to receive the initial cheques, which the U.S. Treasury began giving in late March. Treasury Secretary Steven Mnuchin has said the subsequent installments would show up in August. However, that might mean November for others, if no improvement has been made in the disbursement process.
Stimulus Payment for Investment or Expense?
The original purpose of the stimulus payment to American citizens is to cushion the economic effect of job losses, and business shut down, following the COVID-19 pandemic.
However, as revealed in a tweet from coinbase, the usual volume of buy orders was four times, with most of these amounts around $1200, the same day the first set of stimulus payments were disbursed.
Based on how some Americans have allocated their stimulus payment, it is also likely that the news of a second stimulus payment may be driving the recent bitcoins price increase.
Source: Cointelegraph
