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Following the recent approval of a $1.9 trillion stimulus package by the U.S government. Citizens have begun receiving the $1,400 allocated relief checks from the government. Mizuho Securities surveyed over 235 people expected to receive the checks. Surprisingly 10% of the recipients are looking to bet on Bitcoin with their payouts.
The survey, which Mizuho Securities released on Monday, indicates that 10% of respondents are looking to purchase Bitcoin with their stimulus checks from the U.S government. The poll also shows that recipients will be buying stocks with their checks too. However, Bitcoin appears to be more prevalent in this case, with the case study specifying that Bitcoin could account for 60% of total incremental investment spending.
The expectation is that the stimulus checks could add as much as 2-3% to Bitcoins’ current market value, which currently sits at just over $1 trillion.
Goldman Sachs believes a good amount of stimulus checks will find their way into the stock market. “We expect households will be the largest source of equity demand this year,” Goldman’s chief U.S. equity strategist David Kostin said.
Families Betting for Extra Gains
CNN reports that roughly 90% of American Citizens will be eligible for the stimulus. The funds, which will equal $1,400 per person, could see some families having extra money to invest. The focus then will be on the stock market and the more volatile cryptocurrency market.
With Bitcoin surging in 2021, it appears a likely bet for families looking to turn their luck around. The ability to invest free money into riskier assets such as Bitcoin seems like the preferred option.
Only $380 billion of the total $1.9 trillion will be directly funding stimulus checks for households. However, the survey indicates that 10% or nearly $40 billion will be looking to invest in Bitcoin. The additional surge in Bitcoin buying could see the crypto rally to another all-time high.
New Bitcoin High Expected?
BTC just recently topped a new high as it reached nearly $62,000. The market’s current sentiment is clearly bullish as crypto traders expect households to join in the bullish market, potentially causing more aggressive buying across the board.