Analysts: $40 billion in stimulus checks could go to Bitcoin and the stock market
A survey conducted by the Japanese entity Mizuho warns that $40 billion of the aid checks against Covid-19 sent to Americans could be destined to Bitcoins and shares, according to Business Insider.
Mizuho analysts, led by Dan Dolev, spoke to approximately 235 people with household incomes of $150,000 or less.
The team found that roughly 40% of those surveyed said they planned to use at least a portion of their stimulus money to invest in Bitcoin or stocks. They calculated that this means that nearly $40 billion of the $380 billion in stimulus checks could go to these assets.
The survey also states that investors are more likely to put their stimulus money in Bitcoin (61% of respondents) than in stocks (39%).
“We estimate that new investors in Bitcoin could add up to 2-3% to the crypto’s current market value of $ 1.1 trillion,” says Dan Dolev, senior equity analyst at Mizuho.
Bitcoin surpassed its all-time highs of over $ 61,000 this past weekend as hopes for stimulus and demand from institutional investors boosted the digital asset. However, since Monday, the cryptocurrency has lost most of those gains.
Dolev highlighted a number of crypto-related companies that he believes could benefit from investor stimulus verification moves, including Visa (NYSE: V), Mastercard (NYSE: MA), PayPal (NASDAQ: PYPL) and Square ( NYSE: SQ). In an interview with CNBC on Monday, Dolev said he was “very surprised” by the survey results, causing his team to spend a lot of time “checking the sanity” of the data.