Following the latest $1.9 trillion stimulus funds from the US government, crypto exchanges have not seen enhanced trade volume. This move has piqued the imagination of the cryptocurrency industry, as previous stimulus support has resulted in a wave in crypto transactions on exchanges.
Responses to the Low Bitcoin Buying Turnout
The recent poor attendance for Bitcoin sales has already piqued the imagination of the crypto community. The CEO of Voyager, a US-based exchange, claimed that it was too early to conclude a negative pattern, adding that the recent stimulus funds resulted in substantial deposits on the exchange. Kraken, another US-based exchange, expressed similar views, with a spokeswoman saying that consumers were adjusting. “Many consumers are also raising their revenue targets,” Kraken said.
Why aren't the exchanges seeing an inflow?
Many causes may have played a role in the poor attendance. It's likely that retail traders have agreed to take a rest from buying up high-flying tech stocks and cryptocurrencies in recent months. Or since, according to Bloomberg, trading rates of call options on stocks preferred by users of Reddit's WallStreetBets forum are down. Other macroeconomic conditions may also be to blame for the retail trader withdrawal. As the US economy recovers from a pandemic-induced crisis, consumers are more likely to invest money. According to JPMorgan reports, millennial credit card spending has also increased in the last month. And none of the money has found its way to cryptocurrency exchanges. Prospective investors may also assume that Bitcoin is no longer viable as a result of its price doubling. However, there is already a risk that a bitcoin trading frenzy will occur: the US Internal Revenue Service anticipates that the next round of stimulus payments will be distributed this week.
The price of Bitcoin (BTC) has dropped.
The news seems to be frustrating for Bitcoin bulls, who hoped that the current round of stimulus tests will allow BTC to spike past $60,000 or higher. Bitcoin is down 11% this week after dropping 2.8 percent the previous week. It is currently traded at $51,300. However, since the checks are already being distributed, it could be premature to declare the new stimulus fundings a failure.
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