There was so much expectation regarding the stimulus check payout as part of the Joe Biden administration rescue plan for the pandemic. Similar to last year’s payout outcome, crypto platforms had anticipated a surge in Bitcoin deposit this year as well. However, crypto exchanges revealed that they have not witnessed an increase in trading activity.
Crypto Exchanges Record Low Deposits Despite Stimulus Check
Last year, when the stimulus checks were paid to citizens as Covid19 relief fund, exchanges noticed a spike in Bitcoin deposits. Brain Armstrong, Coinbase CEO said that the exchange noticed a spike in $1000 deposits which happened to be the same amount that was paid out by the government.
A couple of weeks ago, the U.S. government proposed to pay out another round of stimulus checks worth a total of $380 billion. As a result, exchanges and other crypto service providers expected a similar result this year. In fact, Mizuho securities conducted a poll and extrapolated that about $38 billion will be invested in Bitcoin.
However, it appears that the U.S. crypto community have a different plan in mind. The low turnout for Bitcoin purchases has caught the attention of crypto exchanges. They revealed that the trading activity for crypto has not increased as expected.
Crypto Exchanges Optimistic Over Low Bitcoin Purchase
According to Voyager CEO, the stimulus package last year caused a surge in deposits on exchanges, so it is too early to reach a conclusion. It could be that “many customers are adjusting their sales target higher” reveals Kraken, a crypto exchange.
Many have attributed the low turnout to several reasons, which include macroeconomic factors, and the high cost of Bitcoin, considering that the price has become nearly unaffordable for some.
Another suggested reason could be that the crypto community is no longer incentivized to bet on tech stocks and cryptocurrencies. Whatever the cause, exchanges are still optimistic that the trading activity will pick up soon.