Uncovering Retail Trading in Bitcoin: The Impact of COVID-19 Stimulus Checks

【Author】 Divakaruni, Anantha; Zimmerman, Peter

【Source】MANAGEMENT SCIENCE

【影响因子】6.172

【Abstract】In April 2020, the U.S. government sent economic impact payments (EIPs) directly to households as part of its measures to address the COVID-19 pandemic. We characterize these stimulus checks as a wealth shock for households and examine their effect on retail trading in Bitcoin. We find a significant increase in Bitcoin buy trades of size $1,200, which is the modal EIP amount. We find similar increases in trading for other countries that paid out stimulus checks. We estimate that the EIPs have a significant impact on the U.S. dollar-Bitcoin trading pair, increasing buy volume by 3.8% and the price by 0.6%. We also find that demand for Bitcoin is highly price inelastic compared with the demand for stocks. We suggest the demographic characteristics that make people more resilient to the COVID19 economic shock-single, computer literate, and educated-are also characteristics of people who are more interested in Bitcoin.

【Keywords】Bitcoin; COVID-19; retail trading; stimulus checks

【发表时间】2023 2023 MAY 11

【收录时间】2023-06-03

【文献类型】观点阐述

【主题类别】

区块链治理-市场治理-市场分析