On March 15, 2021, Mizuho Securities Co., a wholly-owned subsidiary of Mizuho Financial Group, announced the results of a new survey that said a lot of stimulus money will make its way into the stock markets and cryptocurrency economy. Mizuho’s survey participants earned less than $ 150,000 a year and estimate that 10% of the $ 380 billion in direct stimulus checks are spent on bitcoin and stocks.
Mizuho Securities Survey estimates that $ 24 billion can be used to purchase Bitcoin from stimulus checks
Japanese investment banking and securities firm Mizuho Securities recently surveyed 235 people who earn less than $ 150,000 a year. The survey covered the economic costs, or what Americans are expecting with the direct checks. The whopping $ 1.9 trillion aid package signed by US President Joe Biden will use $ 380 billion for direct stimulus checks. The recently released survey says the bank estimates the stimulus funding worth around 10%, or $ 40 billion, will go into stocks or bitcoin (BTC) purchases.
“The survey predicts that Bitcoin will account for 60% of all additional capital expenditures. We reckon that the current market value of Bitcoin of 1.1 trillion US dollars could increase by up to 2-3%, ”explains Dan Dolev, Managing Director of Mizuho.
After Americans received direct stimulus checks for $ 1,200 and then $ 600, it was believed that many people were spending their money on cryptocurrencies. For example, Coinbase CEO Brian Armstrong tweeted in mid-April about a chart showing a $ 1,200 increase in deposits on the San Francisco-based exchange. The latest bill states that Americans who earn $ 75,000 a year or less will be paid for $ 1,400. Couples earning 150,000 or less per year can receive up to $ 2,800, and a couple with two children can receive up to $ 5,600 in direct grants.
Mizuho respondents prefer Bitcoin to stocks
It was also widely reported this week that Americans are already receiving stimulus money from the US government. Of the 235 people who took part in Mizuho Securities’ survey, 200 said they expected economic stimulus payments in the “coming days”. Around two out of five recipients of direct stimulus checks state that part of the funds will be made available for investment purposes. The survey also found that respondents “prefer Bitcoin to stocks”.
In terms of stocks, survey respondents mentioned buying stocks in companies like Square, Paypal, Mastercard, and Visa. With Bitcoin (BTC) in these financial heavyweights, financial technology (fintech) seems to be at the forefront of investing. Alongside Mizuho Securities, David Kostin, chief US equity strategist at Goldman Sachs, says US households will take net equity demand to new levels. “We assume that private households will be the largest source of equity demand this year,” said Kostin.
What do you think of the recent poll published by Mizuho Securities that estimates Americans will buy bitcoin and stocks with their stimulus money? Let us know what you think on this matter in the comments section below.
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$ 24 Billion, $ 380 Billion, $ 40 Billion, Bitcoin, Bitcoin (BTC), Cryptocurrency, Direct Checks, Direct Payments, Investments, Mizuho Securities, Mizuho Survey, Stimulus, Stimulus Checks, Stocks, Survey , Respondents
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