Many market analysts predicted a surge of BTC price to $100K and above by the end of this year.
Last week, President Joe Biden signed the $1.9 trillion stimulus package as part of the COVID-19 relief bill. Of this, $380 billion is coming as direct bank deposits to Americans. Over the last year, using the money received in stimulus checks Americans have been investing in stocks and Bitcoin (BTC) amid fears of rising inflation and currency devaluation.
As per the recent survey released by Mizuho Securities, nearly 10% of the direct stimulus checks recently released could be coming to Bitcoin and stocks. The survey also carries the study of nearly 235 individuals with less than $150,000 in household income. Of this, nearly 200 people expect to receive the stimulus checks by the third round of release.
20% of these recipients further added that they would invest part of these checks. However, the interesting fact is that the recipients said they would prefer Bitcoin (BTC) over stocks. Mizuho managing director Dan Dolev told Yahoo Finance:
“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 $1.1t trillion market value”.
From this study, Dolev also mentions that could benefit most likely from the stimulus. Interestingly, he mentions all those payment companies having exposure to Bitcoin and crypto. This includes names like Visa, MasterCard, PayPal, and Square.
Goldman Sachs Shares a Similar View on the Relation between Stimulus Checks and BTC
Mizuho Securities is not alone to predict the use of stimulus checks in Bitcoin (BTC). Goldman Sachs chief US equity strategist David Kostin recently said:
“We expect households will be the largest source of equity demand this year. We raise our household net equity demand forecast to $350 billion from $100 billion, which reflects faster economic growth and higher interest rates than we had assumed previously, additional stimulus payments to individuals, and increased retail activity in early 2021”.
As per CNN, nearly 90% of American households are yet to receive the $1400 stimulus checks. Of course, not everyone is going to put their money into Bitcoin (BTC). But the fact that even small players are willing to bet their money on BTC shows that surge in retail acceptance for the world’s largest crypto.
Many market analysts have been already predicting a surge of BTC price to $100K and above ahead by the end of this year.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
