A recent study predicts that more than 10% of the money distributed among United States citizens through $1,400 stimulus checks could end up being invested in Bitcoin (BTC).
According to a March 15 Yahoo Finance report, a survey conducted by Japanese investment bank Mizuho Securities suggests that nearly $40 billion of the $380 billion in direct stimulus checks may become an addition to Bitcoin’s market cap. Mizuho Securities managing director Dan Dolev and his team reportedly asked 235 United States residents with household income under $150,000 about their stimulus checks.
Of those people, 200 said that they expect to receive their third check in the next few days, and nearly 40% expect to invest a portion of it in stocks or Bitcoin. The respondents also showed a preference for Bitcoin over stocks. Saying that Bitcoin could swallow as much as 60% of those investments, Dolev commented:
“We calculate it could add as much as 2-3% to Bitcoin’s current $1.1 trillion market value.”
David Kostin, chief U.S. equity strategist at investment banking giant Goldman Sachs, believes a good chunk of the $1.9 trillion relief package may also push stock prices higher.
The bank increased the amount of money it predicted to be invested in stock and bitcoin to $350 billion, up from $100 billion—based on faster economic growth, increased retail activity, and the stimulus checks.
“The latest round of stimulus checks will be sizable, hence Wall Streeters optimism some of the funds will find their way into asset classes such as bitcoin and stocks.”
By the looks of it, Real Vision founder and investing star Raoul Pal was right with his February remarks. Bitcoin is not just winning over big companies like automaker Tesla and centuries-old banks, Pal said, adding that it is “basically eating the world.”
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February 4, 2020 -
December 9, 2020
