According to Yahoo! Finance, Investment bank Mizuho Securities is reportedly saying that tens of billions of dollars may be used to buy Bitcoin as Americans receive a new batch of direct stimulus payments.
$23,000,000,000 in stimulus checks may be used to buy Bitcoin
In the coming days, Americans can expect a total of $380 billion in stimulus checks as part of U.S. President Joe Biden’s $1.9 trillion relief package. Mizuho polled 235 respondents with a household income of less than $150,000. Close to two out of five recipients look to invest a percentage of their stimulus checks and they prefer Bitcoin (BTC) overstocks, says Mizuho.
The survey reveals that 10% of the $380 billion aid, or $38 billion, will be used to buy Bitcoin and stocks.
Of that $38 billion, Mizuho says recipients plan to invest $22.8 billion in the flagship cryptocurrency:
“The survey predicts that Bitcoin will account for 60% of total incremental investment spend. We calculate it could add as much as 2-3% to bitcoin’s current $1.1 trillion market value.”
The results of the survey appear to mirror the behavior of those who received the first round of stimulus checks. The latest round of stimulus checks will be sizable, hence Wall Streeter’s optimism some of the funds will find their way into asset classes such as bitcoin and stocks. Roughly 90% of American households will be eligible for stimulus checks. For those eligible, they stand to receive a $1,400 check. Considering dependents are included, a couple with two children could receive up to $5,600.
Last year, Coinbase CEO Brian Armstrong revealed that the cryptocurrency exchange had witnessed a spike in deposits worth $1,200, which is the same amount of money that the US government is giving citizens to help them buffer the economic impact of the coronavirus pandemic.
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