The US stimulus package has become a fact. The House of Representatives of Congress voted it out on Wednesday. As a result, around $ 2 trillion will support the economy that has been affected by the COVID-19 pandemic. President Joe Biden has announced that he will sign the bill next Friday. What does this mean for the cryptocurrency market?
Stimulus package vs. economic crisis
220 congressmen, including no Republican, voted in favor of the package. The act was thus supported only by the politicians of the Democratic Party.
The stimulus package represents another tranche of money for most American adults. This time, US citizens will receive $ 1,400 each. Let us remind you that nearly a year ago, in the spring of 2020, they already received $ 1,200 each. It is known that transfers are to be sent out in March.
This is not the end, however. The act extends support for the unemployed until September. If you are out of work, you will receive an additional $ 300 a week on top of your basic benefits. At the same time, an assistance program is launched for people who have a problem with paying the rent. As much as USD 20 billion has been allocated for this purpose.
The money will also be spent on financing the vaccination campaign, as well as medicines and medical services related to the pandemic. Additional funding will be provided to state governments, schools, and businesses.
US authorities pump up the cryptocurrency market?
We are mainly interested in the amounts that most Americans will receive. We’re talking about $ 1,400 per head. Some analysts believe that the package will help pump up the stock exchange. It is possible that some of the funds will go to cryptocurrency exchanges. We finally saw a similar phenomenon last year. We wrote more about it here.
In the summer of 2020, Coinbase’s Brian Armstrong noticed that the number of $ 1,200 deposits (which is what Americans were getting from the government back then) quadrupled at a time when the government was giving away generously. This is a sign that many Americans have invested their resources in cryptocurrencies.
It is possible that it will be again now. Currently, for 1 BTC you pay about USD 55,000, which is over 10 percent. more than a week ago. In turn, 1 ETH costs about $ 1,750, which translates into a 12% increase in the price on a 7-day scale. These values can make an impression and thus inspire Americans to invest in cryptocurrency exchanges.