• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Breaking News: Ecommerce Giant Amazon To Launch NFT Initiative
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Bitcoinist.com
No Result
View All Result
Breaking News: Ecommerce Giant Amazon To Launch NFT Initiative
Advertisement

Crypto Exchange Inflows Swell as Stimulus Checks Arrive, But Will it Matter?

San Lee by San Lee
2 years ago
in Bitcoin, News
0
Advertisement

When the U.S. Congress approved Biden’s $1.9 trillion pandemic response stimulus package last week, the crypto market boomed as Bitcoin surged to an all-time high.

The largest cryptocurrency rose to over $61,500, led by optimism that the stimulus payments would be a boon to the digital asset’s months-long rally. However, as traditional equity markets showed mixed signals on Monday with a string of bad news, Bitcoin plummeted more than 10% alongside the broader crypto market.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.

Analyzing the Impact of Stimulus Checks on the Crypto Market

Since then, the digital token recovered most of its losses and retested previous highs. But can the $300 billion in stimulus checks lead Bitcoin and other altcoins to fresh highs? The answer is unlikely. As the first stimulus checks arrived in the past few days, there has been an influx in the number of crypto exchange deposits, as seen below. 

Lots of small USDT inflows to exchanges.

Take a look at the density of tx count spikes the last week. pic.twitter.com/IJmS8I5prM

— Lex Moskovski (@mskvsk) March 19, 2021

However, a more accurate representation of capital inflow into the crypto market would be the total volume of exchange deposits. Upon a closer look at total inflows in USDT (Tether), we can see that total volume rose to $1.5 billion on the first day of stimulus checks arriving, with a gradual decline to around $700 million in daily exchange inflows. From this on-chain data, it’s clear that the stimulus checks had a negligible impact at best. 

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

A recent survey done by Mizuho Securities indicated that nearly $40 billion in stimulus checks may be spent on equities and cryptos in the following weeks; it could be possible that not all stimulus checks had been claimed to leave a noticeable impact on cryptos. However, the Internal Revenue Service (IRS) reported 2 days ago that more than 90 million stimulus checks worth $242 billion had been delivered. This meant that about 80% of checks had already been claimed across the country. 

So what does this all mean? A possible explanation is that analysts greatly overestimated the importance of stimulus checks, and overoptimism from traders led to the past weekend’s surge. Another possibility is that the potential capital inflow from stimulus checks was negated by bearish news of the Indian government proposing a total crypto ban and a whale allegedly dumping positions on platform Gemini. If the latter, another major catalyst may be needed for cryptos to continue their rally. 

Featured image from UnSplash
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

San Lee

San Lee

Related Posts

Institutional Bitcoin Buying Is a Positive Sign, Suggests Matrixport

Institutional Bitcoin Buying Is A Positive Sign, Suggests Matrixport

1 hour ago
Bitcoin BTC

Inflation May Be In A Lull, What Does That Mean For Bitcoin?

15 hours ago
Bitcoin Lightning Network POS Clover

Major Adoption News For Bitcoin: POS Giant Clover Starts Lightning Trial

1 day ago
Bitcoin

These Metrics Hint At Massive Bitcoin ‘Buying Opportunity’, Says Analyst

2 days ago
Bitcoin Whale

Bitcoin Exchange Whale Ratio Surges, What Does It Mean?

2 days ago
Bitcoin Accumulation And Distribution: Which Cohort Is Taking Part In What

Bitcoin Accumulation And Distribution: Which Cohort Is Taking Part In What

3 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • Bitcoin Cash (BCH) to become legal tender of St. Kitts and...

    26 mins ago
  • Axie Infinity (AXS) Is Down 11.5% and Shiba Inu (SHIB) is...

    42 mins ago
  • Aptos (APT) and Avalanche (AVAX) Are Among The Top Losing...

    50 mins ago
  • Orbeon Protocol (ORBN) Surges, While Litecoin (LTC) and...

    56 mins ago
  • Meta Masters Guild Presale Gathers $1.5m, Price Set to Jump...

    15 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.