According to a Mizuho Bank survey, 10% of the direct stimulus payments that American citizens will soon receive might be used in BTC and stocks investments. Americans expect about $380 Billion in stimulus checks that will come from President Joe Biden’s highly awaited $1.9 trillion aid.
The US President signed the relief package earlier this month, with $416 million set aside for a national vaccination program targeting approximately 50 million American citizens.
Mizuho’s survey shows that out of the 235 respondents earning less than $150K, about 100 are ready to use their checks, preferably to buy bitcoin to stocks. The survey states that at least $22.8 million will account for BTC investments.
Mizuho Bank has also drawn this year’s similarity of stimulus checks BTC investments with last year’s trend. During the wake of COVID-19 early last year, several Americans used stimulus payments to buy the flagship cryptocurrency.
BTC Purchases amid a Pandemic
The COVID-19 pandemic saw many citizens suffer huge losses, go homeless and even succumb to life’s harsh conditions. The US government put up relief funds to help out those who were struggling to fend for themselves. However, the stimulus checks given as relief packages last year seemed to have quite different purposes for some citizens.
According to Coinbase and Binance US, several activities in the crypto market jogging around the $1,200 value right after stimulus checks were disbursed. Coinbase CEO shared a graph showing the user activity and numerous settlements being made of exactly $1.2K.
This year, with the bullish trend of BTC, many stimulus checks recipients will be looking to use their $1,400 proceeds in investing in the flagship crypto. Nevertheless, crypto analysts say that purchasing BTC using stimulus checks could lead to a financial world catastrophe. They are urging investors to avoid buying in too much on BTC as it is not yet ready to operate beyond borders on a global scale.
Cryptocurrency trading analyst Jason Deane said, “The net result of a mass buying of bitcoin at a rate faster than the underlying infrastructure is growing and developing could actually be a disaster not just for economies, but for bitcoin and all cryptocurrencies.”
A Leap of Faith
As American citizens received the first batch of stimulus checks, bitcoin’s price trend did not give investors reason enough to go bullish. Nonetheless, with their relief funds in check, Americans dived into the cryptocurrency market and bought the crypto world-beater. According to Blockchain.com, more people are joining the cryptocurrency bandwagon as crypto users have increased by 41% since 2020. The Mizuho investment company’s survey shows that US residents may still have the same feeling they had almost a year ago; BTC is a good investment.