Survey; 10% of the $380B US stimulus funds might be used to buy BTC 2021

Mizuho Securities, a leading Japanese investment banking and securities company, recently conducted a survey and found that a significant portion of US stimulus funds will be used to buy Bitcoin and stocks. A report unveiled this news on March 15, noting that the firm, which is a fully-owned subsidiary of the Mizuho Financial Group, believes 10% of the $380 billion in direct stimulus cheques will find its way into the crypto and stock markets. Reportedly, Dan Dolev, Mizuho Securities’ managing director, and his team questioned 235 individuals that make less than $150,000 in household income.

According to the report, approximately 200 interviewees out of the 235 subjects said that they were expecting cheques from the third round of direct stimulus funds soon. Allegedly, Mizuho Securities found that two out of every five cheque recipients aim to use a fraction of the allocated funds to invest. The surprising fact is that the cheque recipients were more interested in investing in BTC than in stocks.

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Per Dolev,

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.

While the respondents prefer BTC to stocks, Dolev noted that shares of companies such as Visa, PayPal, MasterCard, and Square would increase in value, seeing as people will use such platforms to invest in crypto.

Goldman Sachs echoes Mizuho’s sentiments

Reportedly, Mizuho Securities is not the only firm that believes a substantial portion of the stimulus funds that the US government is set to pump into households will go to investments. While the US-based bank did not mention crypto, it said that it expects households to be the largest source of equity demand this year. According to Goldman Sachs’ chief US strategist, David Kostin, the bank has raised its household net equity demand from $100 billion to $350 billion.

This news comes after a report noted that up to 90% of US households will be eligible for the $1.91 trillion COVID-19 relief bill. For the eligible households, individuals stand a chance to get up to $1,400. As such, a couple with two children could get up to $5,600 in their accounts once President Joe Biden signs the bill.