American citizens are beginning to receive their $1,200 stimulus checks in an effort to alleviate COVID-19’s economic consequences. However, fresh data suggests that Americans are now using their stimulus checks to buy crypto.

Americans are buying crypto with their $1,200 stimulus checks

Specifically, a recent chart from Brian Armstrong, CEO of the US crypto exchange Coinbase, suggests Americans are flocking to crypto, Armstrong shared the following chart, which demonstrates buys and deposits of $1,200 on Coinbase during the past months.

Moreover, a huge spike, constituting a fourfold increase, is seen at the tail-end of the chart. Although Armstrong does not explicitly link the stimulus check to this surge, this is the likely conclusion.

The US stimulus check will be worth $1,200 and is now beginning to reach the American populace. Interestingly, the stimulus checks will reportedly begin reaching those most adversely economically affected by the COVID-19 coronavirus pandemic.

Nevertheless, the apparent decision by stimulus check recipients to purchase cryptocurrencies is an interesting development. Although the intention is to support citizens facing economic hardship, using the funds to purchase crypto defeats the government’s aim.

At the same time, however, this is indicative of a bullish outlook on the crypto market and mistrust in the government’s economic policy.

“People will be holding crypto after the stimulus package”

The US decision to issue stimulus checks of $1,200 to a large portion of its population is proving somewhat controversial. Although these stimulus checks aren’t without precedent, numerous financial analysts are questioning their long-term effectiveness.

Moreover, others are suggesting that the Federal Reserve’s “quantitative easing forever” strategy could be exacerbating issues relating to the dollar. Nevertheless, it would seem US citizens are now increasingly looking towards crypto in these uncertain times.

Wayne Chen, founder of virtual currency platform Coincurve, recently said that the US stimulus package would boost the crypto market. However, Chen said that he did not believe the stimulus package on its own would dramatically move the crypto market, even though he did suggest the long-lasting crypto effects would be substantial:

“I think people will generally still be holding crypto even after the stimulus package… I don’t think an extra [thousand dollars] of extra pay into their bank account is going to trigger a huge buy activity in the whole cryptocurrency market.”

With the Bitcoin halving event looming less than a month away, it will be extremely interesting to keep an eye on the Bitcoin market.