- Bank deposits have grown a record $2 trillion since January.
- U.S. national debt has risen by over $3 trillion this year.
U.S. banks are seeing unprecedented surges in deposits, according to Federal Reserve data. Deposits have risen January when fears of the pandemic arose in the United States.
The influx in new deposits is massive, with deposits growing $865 billion in April alone, CBNC reports. Deposits have also increased by $2 trillion since January, pushing current deposit figures to $15.4 trillion.
The coronavirus outbreak is likely influencing the surge of deposits. In response to the pandemic, the US government handed out trillions in stimulus, including direct-payment checks to Americans. In addition to the stimulus, the traditional mentality of holding money during uncertain times may be a contributing factor to the increase in deposits.
U.S. National Debt Sees Similar Growth
The U.S. national debt is also growing at a parabolic rate amid the coronavirus outbreak. As reported by The Crypto Associate, U.S. national debt has crossed $26 trillion for the first time. The national debt has grown by over $3 trillion since January alone.
Moreover, The Committee for a Responsible Federal Budget, a non-partisan organization, estimates that federal debt will grow by $4 trillion in 2020. The massive debt growth raises concerns over the country’s ability to sustain it.
Economic policy amid the pandemic is one of the factors fueling the debate over potential inflation. Uncertain economic periods may be a boon for limited-cap assets, like Bitcoin. The debate over Bitcoin as a store of value (SOV) and safe-haven assets has been continuing for years. Unlike the U.S. Dollar, Bitcoin has a cap of 21 million Bitcoin and, thus, can not hyperinflate like traditional fiat currencies.
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