People are willing to invest funds from their stimulus checks into Bitcoin and stock markets. A study by Mizuho Securities conducted on Monday shows that two out of every five recipients plan to invest some portion of their money into bitcoin or stocks. This means that the bitcoin and stocks markets could receive 10% of the total gross payments indirect checks, which is about $40 billion.
President Joe Biden recently signed into law $1.9 trillion in stimulus funding. This funding is reportedly aimed at providing additional relief to workers and employers. This will be done through a tax credit, other small business aid, and expanded federal unemployment benefits.
Inflow could add 3% to Bitcoin’s market value
The Mizuho study was done with 235 individuals who expect to get direct checks. Notably, while a large number is likely to invest in both bitcoin and stocks, many participants preferred investing in Bitcoin.
Over 60% of the participants want to invest in Bitcoin, while 39% want to invest in the stock market. According to Dan Dolev, Managing Director at Mizuho Securities, this inflow could add 3% to the cryptocurrency markets. Dolev explained:
“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 previous stimulus checks have relatively had a significant effect on the cryptocurrency market. Notably, those that invested funds from the first stimulus of $1200, give in April last year, would now have over 700% ROI. According to reports, the pandemic has forced people to look into investment channels due to monotony and lack of pursuits. With more free time and Bitcoin’s current bullish trend, experts predict more people will jump aboard the train.
From the participants, the study found that 20% of the people receiving the stimulus checks plan to allocate 20% of the check to bitcoin and stocks. 13% of the participants plan to give between 20% to 80%, while 2% would be willing to put 80% or more into these markets.
Deutsche Bank also conducted another survey with 430 respondents. In its study, the bank found that 37% of the participants were willing to put a large portion of their checks into stocks. The bank pointed out that in its two previous surveys, only 85 of the funds progressed to stocks.