Following the COVID pandemic, cryptocurrency investors were unaware of the approaching bull season. The rally in risk markets was supported by the decision of governments to distribute billions of dollars directly due to the pandemic shutdown. Central banks tightened their balance sheets for about 2 years following monetary expansion and raised interest rates.
Alaska, one of the largest oil-producing states in the US, took a significant step to support the public’s fight against inflation. Alaska Governor Mike Dunleavy announced a pleasing detail for the residents while unveiling the budget plan. Accordingly, $2.3 billion will be allocated for the Permanent Fund Dividend, which will be distributed directly to the people in the region.
If approved, citizens will receive a distribution of $3,400 per person by filling out a form. The Permanent Fund Dividend, enacted in 1980, is financed by deposits generated from the state’s oil and mining revenues. Alaska is the fourth-largest oil production center in the country with an annual production of 159 million barrels of oil.
According to Republican Governor Dunleavy, the PFD will provide financial assistance to citizens in an environment where the prices of goods and services are rising. During the bank collapse in March, the Fed, which transferred billions of dollars to banks that could not adjust the risk properly, ended the monetary abundance while the cost of living continued due to interest rate increases.
This aid will be the largest expense item in the proposed budget of $10.5 billion for the fiscal year 2025. The PFD has been distributing cash to Alaska residents since 1982. It is unknown how much of this money will go directly into cryptocurrencies, but residents of Alaska can breathe easily for a while in the challenging inflationary environment. Rising prices and weakening wage increases are becoming pressing for people, especially in the low and middle-income groups worldwide.