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.
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.
According to Yahoo! Finance, 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) over stocks, 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. 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.