US Government To Stimulate The Bitcoin Market With $38 Billion?
With America still recovering from the effects of the pandemic, the US government is set hand out $1.9 trillion in a further relief package.
Of that, it’s estimated that $380 billion will be sent out to American citizens in the form of another stimulus check.
It’s estimated that $38 billion of the stimulus check money will be used to buy Bitcoin as Americans receive their latest round of government funding.
In the next few weeks Americans earning under $75,000 will receive a third stimulus check as part of US President Joe Biden’s $1.9 trillion relief package.
Americans Looking To Invest Their Stimulus Check
Investment bank Mizuho Securities carried out a survey and polled 235 respondents with household incomes less than $150,000. It found about 40% of recipients are looking to invest some or all of their stimulus check, and many prefer Bitcoin over stocks.
The survey reveals that 10% of the $380 billion will be used to buy Bitcoin and stocks. Of that $38 billion, Mizuho says American citizens plan to invest about $23 billion in Bitcoin of the hand out from the US government.
‘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,’ clams a Mizuho spokesperson.
Third Round of Stimulus Check Spending Mirroring The First Two
The behavioural results from the survey are similar to those done from the first stimulus check last year, which Americans received $1200.
It was reported last year that Coinbase exchange witnessed a spike in $1200 purchases, the exact amount that American citizens received from the Trump administration in order to help them through the shutdown.
Those who invested the first stimulus check of $1200 at the earliest time they were distributed will be up roughly 800% and sitting on about $9600 now.
Americans also received a smaller stimulus check at the start of 2021. This check was only worth half the amount of the first one, but any savvy American citizen spending the full $600 on Bitcoin is still up significantly.
Whoever received their $600 check on 1 January were the lucky ones because that was the lowest price Bitcoin has been this year.
Anyone buying Bitcoin that day would have gotten about 0.0205 BTC for their check, and in just 11 weeks would have almost doubled their money and be sitting on about $1,143.
US Government Stimulating The Bitcoin Price
With the distribution of stimulus checks already started, it comes as no surprise that Bitcoin recently hit a new all-time high, on a weekend.
Bitcoin Maximalist reported yesterday, that former Goldman hedge fund manager, Mike Novogratz said the new ATH wasn’t down to insititutions, but instead had been ‘triggered solely by retail and the fact that more stimulus checks were on their way, more retail would be buying Bitcoin.’
This was backed up by CryptoQuant CEO, who said his data analysis platform showed no significant institutional purchases, but instead it mostly came from stablecoins – a clear sign of retail spending.
In just 11 months, most American adults have received $3,200 in stimulus checks from the US government to help them through these times.
Only the savviest of investors would have put the first check into Bitcoin, but as the nation has seen Bitcoin grow in value, more and more are opting to buy Bitcoin.