The U.S. government is set to release $380 billion as part of the pandemic relief package promised by U.S. President Joe Biden. According to a poll report from Mizuho Securities, about 6% of the funds would be invested in Bitcoin. The investment bank also predicted that this is going to impact the market cap of Bitcoin by almost 2 to 3%.
10% of Stimulus Package to Be Invested in Bitcoin and Stocks – Study Reveals
On March 15, the United States Congress passed another Covid-19 stimulus package worth $1.9 trillion. This is a major legislative feat for the Joe Biden administration as Americans will receive about $380 billion in stimulus checks. The relief package is to serve as a pandemic relief and aid to U.S. individuals, families, small businesses, and the economy.
Mizuho Securities conducted a survey involving 235 people with a household income below $150,000. According to the poll, about 10% ($38 billion) of the total stimulus checks will be invested in Bitcoin and stocks. However, the study concluded that about 2 of 5 Americans would prefer to invest a portion of their stimulus checks in Bitcoin as opposed to stocks.
Bitcoin Price may Rally Ahead of the Stimulus Package
Of the $38 billion, about 60% (~ $23 billion) will be used to invest in Bitcoin alone. This information could cause Bitcoin price to rally ahead of the stimulus checks release. The study showed that the oncoming Bitcoin mass investment will raise the market cap of the primary cryptocurrency by 2-3%.
This happens to reveal a similar sentiment when the first round of stimulus checks was conducted last year. When the stimulus checks were first released last year, Coinbase CEO, Brian Armstrong said the exchange observed a spike in $1200 deposits. This happens to be the same amount that was paid out by the government as a relief fund to cushion the effects of the pandemic.