Will A Second Round of US Stimulus Payments Mean Another Bitcoin Bull Run?
In the last four hours, Bitcoin has experienced a surge, delighting many crypto enthusiasts. It went from $9,941 to $10, 249, rising 3.1%.
How to Spend a Stimulus Check 101
As many Americans have resorted to investing their first stimulus check of $1,200 USD in the coveted cryptocurrency, many crypto market experts are debating on whether Americans will do the same with the second stimulus check that is supposed to arrive. Treasury Secretary Steven Mnuchin has announced that the second stimulus payment is set to be administered in August.
Covid-19 Economic Relief: Second Round
In late March, the US Treasury delivered its first stimulus checks of $1,200 each. This was set in place by President Donald Trump in order to alleviate the economic hardships that the pandemic stirred up. Due to coronavirus, many Americans lost their jobs, saw their income reduced, and the US economy took a hit as a whole.
White House economic advisor Larry Kudlow spoke about the subject in an interview with CNN and confirmed that the pandemic, US residents will see the second round of $1,200 stimulus checks, which are part of an approximate $1 trillion stimulus package.
Americans Bullish on BTC With Checks
Though Americans are expected to invest this money towards basic goods and services and to supplement their basic income, it is speculated whether that will be the case. It was reported earlier this year by CEO of coin exchange Coinbase – Brian Armstrong – that some Americans who received the first-time stimulus checks of $1,200 their godsend funds towards Bitcoin (BTC) investments, rather than using them towards basic goods and services.
Americans who invested their first stimulus checks towards BTC were rewarded for their efforts, and experienced a 45.5% return, from $1,200 in April to approximately $1,750 at the time of writing, with BTC surging past $10, 200 just now.
When US officials just announced their plans for the $1 trillion stimulus package, BTC’s value on the crypto market surged past $9,500, breaking a long period of low volatility, where the crypto was estimated to fluctuate between $9,000 and $9,500 in pricing.
Gemini Winklevoss Thinks BTC is a Good Hedge Investment
Now, with the excess money printing due to stimulus checks being paid out by US government, influential Gemini CEO Tyler Winklevoss advocated in a recent public tweet that Bitcoin is the way to go, and should invested in. He explained that with the US Federal Reserve’s plan of mass printing money, the “stage for Bitcoin’s next bull run is set.”
The coin exchange CEO thinks that with the current economic turmoil, investors are going to be looking at BTC as a more interesting alternative investment solution, as opposed to mainstream markets.
Image source: Shutterstock