Coronavirus Update: Worldwide cases surge as Americans turn to Bitcoin with their stimulus package
|- Americans interest in Bitcoin and other cryptocurrencies grows amid the COVID-19 pandemic.
- Americans are receiving a monthly stimulus package to cushion them against the COVID-19 effect on the economy.
- Coinbase and Binance US exchanges have confirmed a surge in activity for transactions of exactly $1,200.
The world is conforming to the ‘new normal’ as the fight against the Coronavirus continues. People around the world are either in total lockdown, partial lockdown or restricted movement. All these measures are being put in place to prevent the spread of the highly infectious COVID-19 disease.
Worldwide, the cases of the disease have hit 2.4 million. The good news is that 646,854 people have recovered, in other words, tested negative for COVID-19. Unfortunately, 170,436 people around the globe have lost their lives to this disease.
Bitcoin update
Bitcoin succumbed to a selloff triggered when the World Health Organization (WHO) declared COVID-19 a global pandemic. The largest digital asset lost more than 50% of its value, punching holes in its ability to function as a safe haven asset. Interestingly, the last few weeks have shown that the public has not lost interest in Bitcoin as recovery has been gradual but steady.
According to a report by Forbes, Americans are using up to $1,200 of the monthly stimulus package received from the government to buy Bitcoin and other cryptoassets. The interest in Bitcoin is largely connected to the recovery from lows around $3,884 to highs above $7,000. In addition to that, Bitcoin halving, a rule engraved in Bitcoin code is scheduled to take place in May. The rule ensures that miners’ block rewards are slashed by half to control inflation as well as meet the 21 million maximum coin supply.
Various experts around the world are referring to the event as a perfect storm likely to catapult Bitcoin to new all-time highs. Data shared by Coinbase CEO, Brian Armstrong has indicated an increase in activity especially for the exact figure of $1,200.
— Brian Armstrong (@brian_armstrong) April 16, 2020
The same figure of $1,200 transactions was also confirmed by a representative from Binance US, a crypto exchange platform for the US region from Binance, the largest exchange company by daily trading volume.
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