In April 2020, the US government sent economic impact payments (EIPs) directly to US households as part of its measures to address the COVID-19 pandemic. The team of economists at the Federal Reserve Branch in Cleveland then characterized these stimulus checks as a shock to households and then examined their effect on Bitcoin retail trade. According to the study, the first wave US corona in April 2020 fueled a “significant but modest” increase in bitcoin trading volume and price (BTC, +1.09%). Overall, researchers estimate only 0.02% of the stimulus money ended up in bitcoin. The $1,200 government checks therefore generated a 3.8% jump in trading volume and a 0.7% rise in asset price. However, the researchers noted that the price spike of 0.7 % is “modest compared to the 4.6 percent standard deviation” in daily bitcoin price fluctuations. Compared to the asset's high volatility, 0.7 percent variation isn't much. The report is available here. Read More:Buy and sell Bitcoin and other cryptocurrencies at Coinext
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Fed stimuli influenced "modest" jump in Bitcoin price, according to research
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