The Covid-19 situation has affected the American economy the most. With more 750,000 positive cases and the maximum number of deaths registered to date, it is battling a tough war with the virus. But even more difficult is the current economic situation as the income-earners are not able to go out and work. In order to reduce the stress on the American household, the government had announced an economic stimulus package in which the eligible American citizen has already started getting checks so that they can cope up with the challenges thrown their way. According to some reliable sources, some of the citizens are sending the money received to their crypto portfolio. 

CoinBase CEO Brian Armstrong who has confirmed this has asserted that the crypto exchange has seen a good upward trend in the $1200 deposits which is the same amount the Federal government is giving to the eligible individual. What is surprising about this trend is that while Bitcoin is already reeling under huge bearish trends, people are placing their trust on an asset which is proving to be beneficial. 

If the trends are anything to rely on, then as the halving event approaches the market capitalization of the asset can increase on an everyday basis. This can be a great driving force for bullish trends. It is also predicted that if the bill proposed by House democrats is approved then the rise in market cap will be higher. The bill is proposing to increase the relief cash payments to $2000 per month to every citizen so that the economy bounces back. With an increasing number of people filing for unemployment, the relief so received is increasingly being invested in Bitcoin. If the amount also increases as given in the bill, then a boom in the Bitcoin market is sure on the cards.

Till now Bitcoin has been able to stay afloat in the crisis as the fiat inflation is increasing with the more currency being printed. Also, the transfer of money on this platform is not only safe but also very rapid compared to other traditional methods of transfer.

The times are challenging ahead because apart from the healthcare sector, even the economy is under immense pressure. If the bill passes, hopeful the pressure releases on the economy. 

Image Source – Sup China