$40 Billion Bitcoin Boost: Cryptos to Skyrocket as Americans Invest Covid-19 Stimulus in Them

While the Joe Biden's administration would release $380 billion as Covid-19 stimulus checks to help Americans suffering from the pandemic, almost half of the stimulus checks might be reinvested in cryptocurrencies such as Bitcoin and stocks, further taking its price to new heights in the coming months, revealed a survey conducted by the Japanese firm Mizuho Financial Group.

Mizuho in its survey stated that $40 billion out of the $380 billion would be invested in Bitcoins and stocks. The survey led by Dan Dolev reached out to approximately 235 people with a household income of $150,000 or less. It found that roughly 40 percent of the respondents said they planned to invest their stimulus money in Bitcoins or stocks for a better future and see their money grow in real time.

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While 61 percent of the respondents revealed they would invest their stimulus money in Bitcoins, 39 percent said they would put the money in the stock markets. As per calculation from Mizuho after the survey, nearly $40 billion would be poured into the trading markets, which is the first for a large group of common people coming together using their stimulus checks to pump up the trading market hoping for better fortunes.

"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 $1.1 trillion market value,'' wrote Dan Dolev, Senior Equity Analyst for Mizuho.

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As soon as investors got the whiff that a large stimulus package would be poured into Bitcoin in the coming days, the cryptocurrency hit record highs of over $61,000 per coin over the weekend and institutional investors poured in more money further boosting the demand of the digital asset.

Apart from Bitcoin, Dan Dolev in his report pointed out that other crypto-related firms such as Visa, Mastercard, PayPal, and Square among others might see a sharp rise in the coming months as he believes investors plan to park their stimulus money in these firms for high gains.

Dan Dolev was called on by CNBC for an interview to talk about the results of his survey and revealed that he was "very surprised" that people who only saw hedge fund investors make millions, are now taking the risk of investing money in trading, hoping to make the same amount of money that institutional investors make. He concluded that his survey spent a considerable amount of time "sanity-checking" the respondents answers and is an accurate representation on how people would spend their stimulus check. "It is what it is," Dolev concluded.