About $40 billion is expected to be raised by Americans in the Bitcoin market in the coming weeks, pushing up the price of cryptocurrency, according to research by Japanese investment firm Mizuho Financial Group.
Citizens of the United States are expected to receive a $1.400 check in cash under the Biden $1.9 trillion budget package. However, according to Mizuho, much of this aid will go to the stock market as well as cryptocurrencies.
More specifically, 10% of the approximately $400 billion, or $40 billion, that will be given to Americans in the form of direct transfer payments could be invested in the Bitcoin and equity markets.
Mizuho Financial Group made a survey with the help of 235 people with an income of less than $150.000. Up to 40% of respondents said they would invest state aid in Bitcoin and shares, while 61% said they would choose Bitcoin instead of shares.
Bitcoin is the preferred investment choice among the beneficiaries of the aid. That’s 60% of the cost, which could be an additional $25 billion for Bitcoin. That represents 2-3% of the Bitcoin market, which now stands at $1.1 trillion.
Last week, in March, US President Joe Biden signed a $1.9 trillion stimulus package. This “package”, known as the American Rescue Plan, provides $1.400 in grants for citizens earning less than $80.000 a year.
Many Americans already receive money by direct deposit, while others wait for postal checks. It is noted that this is the third aid in a row to the Americans. Direct transfer payments of $1.200 took place in April 2020 and $600 in January 2021.
Cryptocurrency users who invested $1.200 in Bitcoin last year could make up to $10.000 as of this writing, after the asset rose to $60.000 in March 2021.