To soften the critical blow dealt by the coronavirus to the United States economy, the government issued stimulus checks on last month, and according to data, much of these stimulus checks made their way into Bitcoin and other crypto assets.
The boost in economic activity and spare cash may be partly responsible for the recent bullish price action, in addition to Bitcoin’s halving restoring interest to the space. Here’s what a $1,200 investment made with a stimulus check would have resulted in for ROI across top crypto assets.
Bitcoin Gets Boost From Stimulus Checks Coinciding With Supply Reduction
Markets reached local highs and even all-time highs across the stock market at the start of the year and into February 2020. But that’s about when the world truly learned of the impact the coronavirus would soon have.
Fear spread across the crypto market, causing a historic selloff now referred to as Black Thursday. Bitcoin crashed by over 60%, and the stock market set a record for the worst quarterly close ever recorded in the days following.
The only positive thing to come out of the pandemic – depending on your perspective – was stimulus checks.
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Stimulus relief packages approved by Congress and the President started hitting bank accounts starting on Saturday, April 11, according to the IRS. As soon as these funds started hitting accounts, those that didn’t need to rely on it to cover bills or replace lost income suddenly found themselves with spare cash.
This spare cash made its way into Bitcoin, as was pointed out by a spike in BTC buy orders in the amount of $1,200 – the highest stimulus check awarded depending on income level.
The boost to the first-ever crypto asset could be partly responsible for the recent push to $10,000 that occurred this week.
Those who invested their $1,200 into BTC would now have $1,740 in USD equivalent.
Other Crypto Assets Bring Positive ROI for Relief Money Investors
Investing elsewhere in the crypto market would have provided similar results. Next in line, is Ethereum up by 34%. This would take the $1,200 stimulus check value and turned it into $1,608,
The lagging third-ranked crypto, XRP, is up 17%, turning that $1,200 into $1,404. Chainlink has set similar gains and ROI on that initial $1,200 invested. Tezos, another altcoin rockstar, is up 40% taking that investment to as high as $1,680.
Related Reading | Bitcoin Dominance Reversal At Key Level Points To Sustained Altcoin Rally
Bitcoin, however, topped the list. This is likely due to more interest surrounding the asset’s halving. The event is just days away and will lower the BTC supply miners receive.
This is all happening while the US government is printing more and more supply of USD – an ironic perfect storm for crypto, that is currently absorbing much of the fresh USD being printed.