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Survey says Americans could spend up to $40B from stimulus on Bitcoin

Survey says Americans could spend up to $40B from stimulus on Bitcoin

Many Americans are expected to receive $1,400 checks following U.S. President Joe Biden signing a $1.9 trillion stimulus package into law last week. New polling suggests that much of these funds could end up in the crypto market.

A survey released today from Mizuho Securities estimates that 10% of the roughly $400 billion in funds given directly to U.S. residents could be used to purchase Bitcoin (BTC) and stocks. The Mizuho Financial Group subsidiary surveyed 235 people with a household income under $150,000. Up to 40% of respondents said they would invest the direct payments into BTC and stocks, with 61% saying they would choose Bitcoin over equities.

“Bitcoin is the preferred investment choice among check recipients. It comprises nearly 60% of the incremental spend, which may imply $25 billion of incremental spend on Bitcoin from stimulus checks,” said Mizuho analysts Dan Dolev and Ryan Coyne. “This represents 2-3% of Bitcoin’s current $1.1 trillion market cap.” 

Biden signed the $1.9 trillion package, known as the American Rescue Plan, into law on March 11. It contains $1,400 payments for many individuals earning less than $80,000, with dependents included in each household’s total — e.g. a family of three could expect $4,200. Many Americans have already reported receiving the funds via direct deposit, while others are waiting for paper checks in the mail.

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This is the third direct payment to financially assist those affected by income insecurity during the COVID-19 pandemic. Lawmakers provided many Americans with $1,200 direct payments in April 2020, as well as $600 checks in January. Crypto users who invested the full $1,200 into Bitcoin last year may have realized as much as $10,000 in gains at time of publication, following the asset’s rise to more than $60,000 in 2021.