As a considerable amount in America’s stimulus checks flow into bitcoin, the cryptocurrency seems to be restless from other pressing matters like block reward halving and the holistic effects of COVID-19 on the general world economy.
Below Dives Below $7,000
On Monday, April 20th, 2020, at 21:59 +0100 UTC, the price of bitcoin dropped below $7,000 for the first time this week. As it Crashed by almost 6%, bitcoin quickly rode down the hill to $6,853. Since this initial price crash, the top cryptocurrency has struggled for life above the $7,000 region again but without much success after all.
Making alternate gains and losses along with its struggles for breath, bitcoin made a little progress that favored the bulls for a moment. In the early hours of Tuesday, April 21st, 2020, at 02:59 +0100 UTC, bitcoin touched $6,930 in a short-lived bull tantrum that looked like it was heading towards $7,000 again. However, the bears intercepted again and pulled the price back down by the same margin that it initially moved up.
At the time of writing this piece, bitcoin was changing hands at $6,918 which represented about a 5% price drop from yesterday’s high price of $7,227.
Also read All about the $1,200 Stimulus Paycheck
Halving Event And US stimulus Check
There have been numerous speculations about the price of bitcoin with respect to coming events. Particularly the block reward halving in May, possible prices before and post-halving happened to have caught the interests of many. Many analysts are overly bearish on bitcoin price, postulating a huge price dump before halving occurs. However, the general price bias after the halving event has been bullish, following sentiments from recent block reward halving events.
Another major talk of the town lately is how money has been flowing into bitcoin, particularly from the US lately. According to several reports and interviews by exchange executives, American citizens are said to be investing their $1,200 stimulus check in bitcoins.
Coinbase CEO, Brian Armstrong, related similar statistics while noting an increase in the number of transactions synonymous with the amount of $1,200.
— Brian Armstrong (@brian_armstrong) April 16, 2020
Similarly, a report published by Forbes on Monday related that a Binance exec during an interview with coindesk revealed related statistics, indicating that Binance has seen more people buying $1,200 worth of bitcoins on the exchange lately. Random comments from Reddit community users also cited similar thoughts.
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