The US President, Joe Biden recently signed the American Rescue Plan to support the citizens with $1,400 stimulus checks. The stimulus check recipients are now planning to invest that money in Bitcoin and stocks.
According to a recent survey conducted by Mizuho Securities, around $40 billion of the stimulus checks could go to Bitcoin and stocks. The survey highlighted that more recipients are interested in Bitcoin compared to the stock market.
Mizuho surveyed a total of 235 individuals with a household income of $150,000 or less. Around 40% of the respondents mentioned that they are planning to invest in BTC and financial markets. 61% of the respondents said that they would prefer Bitcoin over the stock market in case of investment.
“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,” Dan Dolev, Senior Equity Analyst for Mizuho mentioned.
During an interview with CNBC on Monday, Dolev mentioned that the results were surprising for him.
Bitcoin and the Stock Market
Finance Magnates earlier reported a surge in crypto trading in South Korea. The total cryptocurrency trading volume on leading Korean digital exchanges crossed the total trading volume on the Korean Composite Stock Price Index (KOSPI) earlier this week. Just like the crypto market, global stock markets have been surging since the start of 2021. The recent survey results indicate that there is huge demand for Bitcoin and other digital currencies as new retail traders enter the market. The overall crypto market is up by more than $900 billion since the start of this year. The price of Bitcoin gained nearly 100% in the last 10 weeks.
Most of the respondents said that they expect to receive the third round of stimulus checks in the coming days. Dolev added that several companies offering services in Bitcoin payments can take advantage of the recent investment trends.