CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$60,730.00
  • ethereum
    ETH$2,391.99
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Coinbase Sees $1,200 Deposits Peak Following First US Stimulus Package Distribution

    Coinbase Sees $1,200 Deposits Peak Following First US Stimulus Package Distribution

    Author: Jordan Lyanchev

    Last Updated May 22, 2020 @ 11:56

    The most widely used American cryptocurrency exchange, Coinbase, reported increased $1,200 deposits yesterday. Interestingly, this coincides with the stimulus checks for the same amount that the U.S. government began sending this week to fight the financial struggles caused by the coronavirus pandemic.

    Record $1,200 Coinbase Deposits

    According to data provided by Coinbase CEO Brian Armstrong, the popular exchange received a record number of $1,200 deposits yesterday.

    Coinbase $1,200 Deposits.
    Coinbase $1,200 Deposits.

    As the graph above illustrates, the exact amount of $1,200 typically accounts for about 0.1% of all deposits on the platform. Now, however, the number has quadrupled to nearly 0.4%.

    What’s curious about the situation now is the $2.2 trillion coronavirus stimulus package signed by President Trump in March. It aims to help ease the financial pain prompted by closing the economy to fight the novel coronavirus. Per this emergency plan, adults making under $75,000 a year will receive a check for the amount of $1,200.

    And, even more compellingly in this scenario is the fact that the U.S. government started sending those checks to American citizens this week. According to Treasury Secretary Steven Mnuchin, 80m people should have received a direct deposit in their bank accounts by Wednesday – April 15th.

    ADVERTISEMENT

    Netspend, which processed about $1 billion in relief payments, said that most customers are using those funds for “groceries, fast food, pharmacies, gas, as well as withdrawing cash from ATMs.”

    But with the increased number of $1,200 deposits on Coinbase, some community members are speculating that U.S. citizens are utilizing the money for purchasing digital assets.

    As prominent economist Peter Schiff recently pointed out, printing money in such extensive amounts in short periods could decrease the dollar’s value and bring hyperinflation. Therefore, people could be searching for an alternative.

    Effects On Cryptocurrency Prices?

    Another intriguing coincidence came yesterday when the price of the primary digital asset surged by $550 in just 90 minutes. Bitcoin went from a daily low of $6,470 to steadily trading above $7,000.

    Moreover, most of the cryptocurrency market is well in the green. The second-largest coin by market cap, Ethereum, is 11% up in the past few days. Binance Coin (BNB), Litecoin, Bitcoin Cash, EOS, and Bitcoin SV are up by approximately 8% in the same timeframe.

    Consequently, the total market capitalization has jumped in a day by 8.5% from $187B to $203B.

    Cryptocurrency Market Overview. Source: coin360.com
    Cryptocurrency Market Overview. Source: coin360.com

    Nevertheless, the connection between Americans receiving $1,200 stimulus checks, increased deposits for the same amount on Coinbase, and cryptocurrency price surges is merely speculation at this point. However, it’s interesting to follow if future checks would influence the market in the same manner.

    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • USDsignBitcoin
      $1,200 US Stimulus Check Is Now Worth Almost $3,000 If Invested In Bitcoin
    • WinklevossTwins
      Code to Buy Bitcoin: Tyler Winklevoss About US Stimulus Packages
    • coinbase_card_cover
      Coinbase Launches A Crypto Debit Card With 1% Reward on Bitcoin Spendings
    Tags: Altcoins Bitcoin (BTC) Price Coinbase Coronavirus (COVID-19) United States
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Jordan Lyanchev
    More posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

    button
  • bitcoin
    BTC$60,730.00
  • ethereum
    ETH$2,391.99
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    bigomex
    Bitcoin Editorials
    4 Reasons Altcoin Season 2021 Has Officially Started

    4 Reasons Altcoin Season 2021 Has Officially Started

    After Tesla: Is Apple Eyeing Bitcoin? What We Could Expect to See Next (Opinion)

    After Tesla: Is Apple Eyeing Bitcoin? What We Could Expect to See Next (Opinion)

    What Is NFT? Non-Fungible Tokens Guide For Dummies

    What Is NFT? Non-Fungible Tokens Guide For Dummies

    What is BitClout? The Latest Crypto Hype – Is It Safe?

    What is BitClout? The Latest Crypto Hype – Is It Safe?

    What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke 

    What is Dogecoin (DOGE)? 5 Facts About the Crypto That Started as a Joke 

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!