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The Bitcoin (BTC) market may soon get an infusion of up to $24 billion from American households. This is based on a recent survey which asked households with incomes below $150,000 how they might spend their stimulus money.
Mizuho recently surveyed 235 people from households with annual incomes less than $150,000 annually and asked them what they might purchase when they receive their direct stimulus checks. The team of analysts, led by Dan Dolev, found out that 40 percent of the participants plan to invest a portion of their stimulus money on Bitcoin or stocks, according to Business Insider.
U.S. President Joe Biden recently signed a $1.9 trillion relief package to help cushion the impact of the coronavirus pandemic on the economy. Out of the total amount, $380 billion has been appropriated for direct stimulus checks, Bitcoin.com reported.
Based on Mizuho’s calculations, up to $40 billion of the $380 billion could go to the Bitcoin and stocks markets. However, the survey also revealed that Americans are more likely to invest their stimulus money into BTC than stocks.
On the 40 percent of respondents who said they plan on investing, 61 percent said that they would invest in Bitcoin. On the other hand, 39 percent plan to invest in the stock market.
Based on Mizuho’s computations, this could mean that around $24 billion (61 percent of the $40 billion) would eventually be invested in BTC. Meanwhile, around $16 billion (39 percent of the $40 billion) would go into the stock market.
This could positively impact BTC’s price and market cap. “The survey predicts that bitcoin will account for 60% of total incremental investment spend,” Mizuho Senior Equity Analyst Dan Dolev wrote. “We calculate it could add as much as 2-3% to bitcoin's current $1.1 trillion market value.”
For the survey participants who prefer to invest a portion of their stimulus money on stocks, fintech firms appear to be their top picks. For instance, companies like Mastercard, PayPal, Square, and Visa were among those mentioned as possible investment options by the respondents.
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