Covid Stimulus Checks Fueled ‘Modest’ Jump in Bitcoin Price Last Year: Cleveland Fed

Covid Stimulus Checks Fueled ‘Modest’ Jump in Bitcoin Price Last Year: Cleveland Fed

The first round of U.S. corona-cash in April 2020 fueled a “significant but modest” bump in bitcoin trading volume and price, according to a Friday study from the Federal Reserve’s Cleveland branch.

Central bank researchers estimated the government’s $1,200 stimulus checks fueled a 3.8% jump in trade volume and a 0.7% rise in price. Overall, they estimated just 0.02% of the stimulus money ended up in bitcoin.

Framed against bitcoin’s wild volatility, these figures don’t add up to much. The researchers noted the 0.7% price spike is “modest compared to the 4.6 percent standard deviation” in bitcoin’s daily price swings.

They nevertheless said the jumps were “statistically significant.”

This story will be updated.

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