According to a report research announced by the US Federal Reserve (Fed) in Cleveland on July 16 that the first US stimulus package in April 2020 had resulted in a “significant but modest increase” in Bitcoin volume and price.

Fed researchers estimate that a $ 1,200 government economic check sent to Americans during the Covid-19 pandemic would cause trade volume to increase 3.8% and prices to increase by 0.30%. 7% led. Overall, they estimate that only 0.02% of the amount was converted into Bitcoin.

Based on Bitcoin’s wild volatility, these numbers don’t add up to much. Regarding the “permanent price gain” of 0.07%, the researchers say their results are tiny compared to the 4.6% standard deviation of Bitcoin’s daily price movement.

However, Fed researchers say this price jump is statistically significant.

This new finding seems to counter the notion that the Bitcoin price spike last year was due in part to the US government giving people free money. Fed experts noted that bitcoin purchases do happen, but mostly among young, moderate-income individual investors.

“This is consistent with the picture of a typical Bitcoin investor who believes in ‘drawn’ surveys,” the researchers found. They found that groups of residents with a higher need for stimulus money, such as families and the unemployed, did not participate in the crypto market.

According to the researchers, Japan and South Korea have also seen slight swings in the crypto market following their respective governments’ Covid-19 stimulus packages.

In conclusion, Fed experts advise policymakers not to worry that the crypto market will steal future economic funds.

peace

According to Coindesk

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