Coinbase Reports Record $1,200 Deposits as People are Buying Crypto With Stimulus Checks

Brian Armstrong, the CEO of major cryptocurrency exchange Coinbase, has shared data on Twitter with the public which shows that the crypto exchange saw a record large spike in deposits that made with $1,200. The interesting point is that this amount is exactly the same amount that is being given in stimulus checks to US citizens by the government which suggests that people are using stimulus checks to buy bitcoin.

A record number of $1200 deposits

Coinbase CEO Brian Armstrong shared a chart that clearly indicates that the crypto exchange reported a large number of $1200 deposits yesterday on April 16.

Of all deposits made on the platform, the amount of $1200 comprises of nearly 0.1%. The number has now increased to around 0.4% of all inflows.

US citizen are buying Bitcoin with Stimulus

As the COVID-19 situation has more worsened than before in the U.S. therefore, the US government has decided to help out those people who have been seriously affected by this pandemic. President Donald Trump announced to distribute the $2.2 trillion coronavirus stimulus package for affected people.

The US government is paying affected citizens in the form of stimulus checks. Those who have income below $75,000 will be given a stimulus check of $1200 while those who have income below $150,000 will get a stimulus check of $1200.

However, people are taking great advantage of these checks and are spending their money on cryptocurrencies. Some people in the community believe that the citizens of the United States are using these stimulus checks to buy cryptocurrency. The chart shared by the Coinbase CEO Brian Armstrong also shows that people are buying bitcoin with these checks.

What is the reason? It might be the reason that they are looking for some kind of alternative to the fiat currency because recently the prominent economist Peter Schiff said that dollar might see a decrease in its value in the future. Therefore, people are preparing for that situation by making bitcoin their alternative.

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