The Joe Biden Administration signed the 1.9 trillion stimulus bill into law last week. $400 million
Of that will go directly to citizens of America. A survey by Mihuzo Securities shows that 10% of that volume may be used to purchase Bitcoin and stocks.
The Mizuho Financial Group subsidiary surveyed 235 people with a household income under $150,000. Up to 40% of respondents said they would invest the direct payments into BTC and stocks, with 61% saying they would choose Bitcoin over equities.
“Bitcoin is the preferred investment choice among check recipients. It comprises nearly 60% of the incremental spend, which may imply $25 billion of incremental spend on Bitcoin from stimulus checks,” said Mizuho analysts Dan Dolev and Ryan Coyne.
This is the third direct payment to financially assist those affected by income insecurity during the COVID-19 pandemic. Lawmakers provided many Americans with $1,200 direct payments in April 2020, as well as $600 checks in January. Crypto users who invested the full $1,200 into Bitcoin last year may have realized as much as $10,000 in gains at time of publication, following the asset’s rise to more than $60,000 in 2021.
The arrival of the stimulus checks can push crypto and equity markets even higher as it has done in the past. This dynamic is important to note in your investment decisions.
Victor Nnadi is an Independent Economics Researcher and a Securities Trader.
