Policymakers should not be concerned, the researchers wrote: Only 0.02% of coronavirus-relief checks ended up in bitcoin.
Tax hikes could encourage profit taking in cryptocurrencies, but some investors remain bullish as ongoing stimulus could trigger inflation.
Bitcoin’s struggle to retest a key resistance level at $60,000 has “dampened” market sentiment, said one trader.
Slowing bitcoin volume suggests retail traders are less active with their "stimmy" checks compared to 2020.
The stimulus checks are in the mail so it might be too early to call the hyped-up episode a dud.
The decline in institutional investment may be one reason behind bitcoin's failure to hold above $60,000.
The survey by Mizuho Securities estimates that 10% of the $380 billion to be issued as checks could be used to invest.
The measure may contribute to temporary inflation during the summer, economists say.
Stronger bond yields and a rising dollar are capping price progress for risk assets.
The top cryptocurrency is changing hands near $50,500 at press time, representing a 4% gain on the day, having clocked a high of $51,320 early today, according to CoinDesk 20 data.
The Senate passed President Joe Biden’s $1.9 trillion Covid 19 relief package Saturday, a possible positive development for cryptocurrencies. Why this matters to the crypto world:
The price could go higher, unless traders start taking profits.
The comments came after reports the White House was considering reducing the size of its proposed stimulus package.
After Joe Biden's inauguration on Jan. 20, an expected raft of new stimulus measures may further boost bitcoin's rally, say analysts.
Negotiators on Sunday were hammering out final details of a $900 million pandemic stimulus, the Wall Street Journal reported.