Stimulus package drop in coinbase

[Sanugarid]

So I've read that coinbase has been receiving a $1,200 deposits which the US government pays their citizen for quarantine relief, stimulus package.

The CEO of Coinbase Brian Armstrong reported that they were getting a huge number of deposits amounting $1,200 that quadrupled over a week.

Are we going to see a massive pump because of this? Or is it just the big players acting to stage a pump like season to set traps for the upcoming halving?

As for Treasury Secretary Steven Munchin, they have distributed the stimulus check last week in nearly half of their target. 80 million people should have received it.

If this is true that American Citizen has been buying bitcoin from last week, or at least half of them, do you believe that this could start the bull to run?

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[fabiorem]

Its the big players setting traps, no doubt.

The $1200 stimulus package would never be sent through a crypto exchange. They will deposit it in the bank.

There will be a massive dump after the halving, due to the nature of the hype this time.

It was pointed out that bitcoin was in a bull market right before the halving, in the two previous cycles. Its not the case right now, as paper speculation turned bitcoin into a legacy asset. Now there is correlation between bitcoin and the stock market, as it happens with any paper asset.

Maybe this explains why so many investors are running to ethereum. They want a hedge against the stock markets, and bitcoin have failed to deliver. So now people will need to hedge against bitcoin too, but will ethereum be able to fulfill this task? Only time will tell.

[avikz]

Unfortunately, there is no way to check the legitimacy of this claim. It's highly unlikely for US citizens to buy bitcoin using the government help! But if that is actually happening, then we can certainly expect a huge pump in bitcoin market.

But if people are buying bitcoin with this money, they might face probe from tax authorities at a later date because the aim of such help is to increase market demand of daily items and to support the economy. Investing in bitcoin wouldn't help that goal!

[figmentofmyass]

So I've read that coinbase has been receiving a $1,200 deposits which the US government pays their citizen for quarantine relief, stimulus package.

The CEO of Coinbase Brian Armstrong reported that they were getting a huge number of deposits amounting $1,200 that quadrupled over a week.

if you're talking about this tweet, i would take it with a grain of salt. brian armstrong worded that tweet and provided the data in a very misleading way.

on one day, the % of ACH deposits for exactly $1200 spiked from ~0.1% to >0.3%. the jump looks big when charted a certain way, but in real dollar amounts, it's probably negligible.

Are we going to see a massive pump because of this?

no.....

[jossiel]

Whether there's a ton of stimulus coming into Coinbase, look at the prices.

There's no actual boost that happened and in fact, a dip appeared. That really can't tell that the bull run has started, what if we've seen the actual bull run last year and we are on the cycle of bear market again? I don't know..

But the deposits shown to the graph has dropped already. There a small impact but it didn't last.

[JeromeTash]

So I've read that coinbase has been receiving a $1,200 deposits which the US government pays their citizen for quarantine relief, stimulus package.

The CEO of Coinbase Brian Armstrong reported that they were getting a huge number of deposits amounting $1,200 that quadrupled over a week.

Are we going to see a massive pump because of this?

Are you kidding?

Even if this was 100% true, people are going to have to cash out anyway to fiat currencies which they can easily spend. It's not like if Government deposited the money in their coinbase accounts, they would just HODL. In fact i would even expect the price to drop further due to massive selling pressure.

[HeRetiK]

I'm afraid most people are too worried about making ends meet to start thinking about investing in crypto. The only cash that could potentially move into Bitcoin right now is the one we have seen being pulled out of the stock market. I have my doubts that this money will find its way into crypto though.

Now the long term implications of the Fed and the EU trying to kick start their respective economies by injecting cash on the other hand....

if you're talking about this tweet, i would take it with a grain of salt. brian armstrong worded that tweet and provided the data in a very misleading way.

Thanks for the link, I was already wondering about the source.

[jackg]

Its the big players setting traps, no doubt.

The $1200 stimulus package would never be sent through a crypto exchange. They will deposit it in the bank.

There will be a massive dump after the halving, due to the nature of the hype this time. 

Yeah this is more realistic, also was the $1200 not an average and did everyone even get the checks now? I thought some were waiting on that still (direct deposits have apparently gone through based on social media).

There could be a tiny rise now with a dramatic fall after the halving or even before it, I don't think the $1200 would be put into btc in its entirety either, people might throw $200 or even $10 (and given most bullish estimates put bitcoin to be worth over $100k then this still puts people in a good place to benefit from this).

I'm afraid most people are too worried about making ends meet to start thinking about investing in crypto. The only cash that could potentially move into Bitcoin right now is the one we have seen being pulled out of the stock market. I have my doubts that this money will find its way into crypto though.

5 trillion got pulled out at least, a lot of it may have already found it's way back since we're probably only about 10% down now.
But if people have had to rebalance where their funds go and a lot of stock markets offer entry to bitcoin then we may expect to see some people putting a small percent of their equity 1-5% of risky portfolio amounts into bitcoin.

[carter34]

Whether there's a ton of stimulus coming into Coinbase, look at the prices.

There's no actual boost that happened and in fact, a dip appeared. That really can't tell that the bull run has started, what if we've seen the actual bull run last year and we are on the cycle of bear market again? I don't know..

But the deposits shown to the graph has dropped already. There a small impact but it didn't last.

We may not see immediate bull for now because the fear is still on but with time, the stimulus relief will later reflect with time. Surely investment will start growing since the 1,200 has being released to the citizen's account or coinbase.

[Twinkledoe]

Its the big players setting traps, no doubt.

The $1200 stimulus package would never be sent through a crypto exchange. They will deposit it in the bank.

There will be a massive dump after the halving, due to the nature of the hype this time.

It was pointed out that bitcoin was in a bull market right before the halving, in the two previous cycles. Its not the case right now, as paper speculation turned bitcoin into a legacy asset. Now there is correlation between bitcoin and the stock market, as it happens with any paper asset.

Maybe this explains why so many investors are running to ethereum. They want a hedge against the stock markets, and bitcoin have failed to deliver. So now people will need to hedge against bitcoin too, but will ethereum be able to fulfill this task? Only time will tell.

I am thinking that also. Whales might be depositing those $1200 intermittently to make it look these come from the stimulus package. Is the CEO blinded by this kind of strategy or he is also part of this tactic so people will deposit their corresponding stimulus package as well? I don't know if it is a bait or not from Coinbase but I don't think many people will directly deposit it on them.

[figmentofmyass]

Yeah this is more realistic, also was the $1200 not an average and did everyone even get the checks now? I thought some were waiting on that still (direct deposits have apparently gone through based on social media).

$1200 is the standard amount per individual taxpayer, + $500 per child.

not everyone has received payment, only those who filed 2018 or 2019 tax returns with direct deposit info. those people got paid last week. people who input their direct deposit info via the new online portals have apparently not received anything, and they still need to cut millions of physical checks.

The $1200 stimulus package would never be sent through a crypto exchange. They will deposit it in the bank.

jack dorsey was advertising cash app for receiving stimulus payments: https://twitter.com/jack/status/1248711672337817601

those people can turn around and buy bitcoin through the app. i reckon there's plenty of people receiving money who don't really need it, a small minority of which might put it into bitcoin. i don't think it's meaningful for the price though.

[HeRetiK]

5 trillion got pulled out at least, a lot of it may have already found it's way back since we're probably only about 10% down now.
But if people have had to rebalance where their funds go and a lot of stock markets offer entry to bitcoin then we may expect to see some people putting a small percent of their equity 1-5% of risky portfolio amounts into bitcoin.

I wouldn't be surprised if there's money on the sidelines right now, waiting to see whether Bitcoin goes down with the stock market or keeps true to its promise as a hedge during times of financial crisis. At least the current sideways movement makes it seem as if the market is currently on the fence of what to make of Bitcoin.

[Stedsm]

So you mean to say that a 96 billion USD stimulus package got injected, dropped via coinbase and people started to buy BTC instead of thinking about the upcoming circumstances that will worsen both - their economy as well as affect the current as well as future conditions of a common man and his family? That way, others might have gambled those funds too, no? I guess that this will still not be a positive sign but can become a reason for a panic dump just when they will realize the seriousness of what's actually happening and how they are about to deal with something never experienced before. We, in India, have never ever seen our railways to have stopped in our entire history since it began to run, but this pandemic has written a new page.

[FanatMonet]

Most likely this is just an attempt to manipulate public opinion, I very much doubt that from such times, people will invest in cryptocurrency without sources of income, and experiencing other deprivations, and having no idea when everything is normal.

[betty11]

I won't know if what the CEO of coinbase is saying is true, but if verified to be true, this may easily not lead to  the needed pump in the market. These are just some few persons who are aware of cryptocurrency or are the over 80M+ persons going to place their money to buy bitcoin? Bitcoin has its whales and huge dedicated community not just stimulus package purchase.

[jossiel]

Whether there's a ton of stimulus coming into Coinbase, look at the prices.

There's no actual boost that happened and in fact, a dip appeared. That really can't tell that the bull run has started, what if we've seen the actual bull run last year and we are on the cycle of bear market again? I don't know..

But the deposits shown to the graph has dropped already. There a small impact but it didn't last.

We may not see immediate bull for now because the fear is still on but with time, the stimulus relief will later reflect with time. Surely investment will start growing since the 1,200 has being released to the citizen's account or coinbase.

Bull run comes gradually but there were times that it has surprisingly buffed bitcoin. I agree with you that it may not reflect this time but there will be the time that we will see the effect of it.

That stimulus package from the US government will contribute to the market but there's more to it. CMIIW, there will be the other batches coming soon because the expected amount for beneficiaries is higher than that.

[Subbir]

It's just a stimulus they are going to the pump on faith the market just in case they're damaged by the market whales I do not think it is a package purchase they buy without being conscious of the investment. therein case drop the Coinbase If there was an honest idea  he would analyze the markets alright and therefore the amount of investment would increase.

[verita1]

Armstrong certainly released a chart showing an increase in deposits under the $ 1200 variants that coincides with the date the first wave of the stimulus check was awarded.
Some deny Armstrong's interpretation as others who support him.
The coincidence indicates that the deposits may be from the stimulus checks that some citizens wanted to invest in crypto.

https://twitter.com/brian_armstrong/status/1250907110730170370?s=19

Also on twitter, I have found versions like that the US citizens have used the stimulus check for essential things and even the check was not enough to cover their needs.

https://twitter.com/MaddowBlog/status/1252792434242830342?s=19

Bull to run is very difficult to specify what happens in the current moment in which we live.

[SeaBits]

The IRS is having lots of delays, I know about 10 people that have logged in to check their status and said the website said something like "IRS stimulus payments are running into glitches and delays" or it says nothing at all. If checks are being delayed, you can't put them in any exchange so might see them bring this up over and over again.

https://www.washingtonpost.com/business/2020/04/18/waiting-for-stimulus-payments/

[squatz1]

Unfortunately, there is no way to check the legitimacy of this claim. It's highly unlikely for US citizens to buy bitcoin using the government help! But if that is actually happening, then we can certainly expect a huge pump in bitcoin market.

But if people are buying bitcoin with this money, they might face probe from tax authorities at a later date because the aim of such help is to increase market demand of daily items and to support the economy. Investing in bitcoin wouldn't help that goal!

+1 to this.

This claim is going to perpetuated by anyone that is going to directly benefit from people buying Crypto. If Binance was to come out and say that they had a influx of $1200 purchases that's like a gold seller putting out an ad saying the same sort of thing.

The only way you're going to be able to even get close to figuring this out would be through surveys, and the surveys would be HEAVILY biased by selection bias (and the completion bias, unsure what that's called)

Though on a serious note: I highly doubt that the people who fit within the income limits of the stimulus money truly do need this money and are not going to dump it into any investment (speculative or not) They're going to spent it on food, rent, mortgage, car payments, etc.