Politicians should not be concerned that their financial support to American households has been massively used to buy cryptocurrencies. This is the main conclusion of a study by the Cleveland branch of the Federal Reserve System.
The first wave of government financial support to American households had little effect on the intensity of trading in Bitcoin or its market value. The authors of the study cleveland branch of the Federal Reserve System (US Central Bank) claim this.
The so-called “paychecks” paid by the US government to households during the coronavirus pandemic increased the volume of Bitcoin trades by 3.8 percent and caused its price to increase by 0.7 percent. Only 0.02 percent of the total amount of money paid out by the government was used to invest in Bitcoin.
The authors of the analysis refute the speculation that the financial support ($ 1,200 per person) paid to households during a pandemic is often used in its entirety for the acquisition of cryptocurrencies. It is said that such purchases took place from time to time, but it concerned almost exclusively young people with lower incomes who live alone. “This is in line with the typical characteristics of a bitcoin investor,” the Fed’s Cleveland office said in a statement.
