Many Americans are expected to receive checks for $ 1,400 after US President Joe Biden signed a $ 1.9 trillion stimulus package last week. New research suggests that many of these funds could end up in the crypto market.
A survey released today by Mizuho Securities estimates that 10% of the nearly $ 400 billion in funds given directly to U.S. residents could be used to buy Bitcoin (BTC) and shares. The Mizuho Financial Group subsidiary interviewed 235 people with a family income of less than $ 150,000. Up to 40% of respondents said they would invest direct payments in BTC and stocks, with 61% saying they would choose Bitcoin over stocks.
“Bitcoin is the preferred investment choice among check recipients. It comprises almost 60% of incremental spending, which could mean $ 25 billion in incremental spending on Bitcoin from stimulus checks, ”said Mizuho analysts Dan Dolev and Ryan Coyne. “This represents 2-3% of Bitcoin’s current $ 1.1 trillion market value.”
Biden signed the $ 1.9 trillion package, known as the American Rescue Plan, in law on March 11. It contains payments of $ 1,400 for many individuals earning less than $ 80,000, with dependents included in the total for each family – for example, a family of three can expect $ 4,200. Many Americans have already reported receiving funds through direct deposit, while others await checks in the mail.
This is the third direct payment to financially help people affected by income insecurity during the COVID-19 pandemic. Lawmakers provided many Americans with direct payments of $ 1,200 in April 2020, as well as checks for $ 600 in January. Crypto users who invested $ 1,200 in Bitcoin last year may have seen up to $ 10,000 in earnings at the time of publication, after the asset increased to more than $ 60,000 in 2021.