Mizuho Bank Survey Says $24 Billion in US Stimulus Checks May Be Used to Buy Bitcoin

On March 15, 2021, Mizuho Securities Co., a firm wholly-owned subsidiary of Mizuho Financial Group, revealed the findings of a new survey that says a great deal of stimulus money will find its way into stock markets and the cryptocurrency economy. Participants in Mizuho’s survey made less than $150k per year and estimates suspect 10% of the $380 billion in direct stimulus checks will go toward bitcoin and stocks.

Mizuho Securities Survey Estimates $24 Billion from Stimulus Checks May be Used to Buy Bitcoin

Japanese investment banking and securities firm, Mizuho Securities, recently surveyed 235 individuals who make less than $150,000 annually. The survey covered stimulus expenses or what they expect Americans to purchase with the direct checks. Out of the whopping $1.9 trillion relief package signed by U.S. President Joe Biden, $380 billion is appropriated for direct stimulus checks. The recently published survey says that the bank estimates around 10% or $40 billion worth of the stimulus funding will find its way into stocks or purchasing bitcoin (BTC).

“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 $1.1t trillion market value,” explains Mizuho managing director Dan Dolev.

After Americans received direct stimulus checks for $1,200 and then $600, it has been assumed that lots of people spent their funds on cryptocurrencies. For instance, in mid-April Coinbase CEO Brian Armstrong tweeted about a chart that showed a spike in $1,200 deposits on the San Francisco-based exchange. The latest bill says Americans who earn $75,000 per year or less will get a payment for $1,400. Couples who earn 150k or less per year can get up to $2,800 and a couple with two children could receive up to $5,600 in direct stimulus funding.

Mizuho Survey Participants ‘Prefer Bitcoin Over Stocks’

It has also been widely reported this week, that Americans are already getting stimulus money from the U.S. government. Out of the 235 participants in Mizuho Securities’ survey, 200 said they expect stimulus payments within the “coming days.” Around two out of five of the direct stimulus check recipients say that a portion of funds will be allocated to investment purposes. The survey also noted that the survey participants also “prefer bitcoin over stocks.”

As far as stocks are concerned, survey participants mentioned buying equities in companies like Square, Paypal, Mastercard, and Visa. With bitcoin (BTC) included with those financial heavyweights, financial technology (fintech) seems to be at the forefront of investments. In addition to Mizuho Securities, Goldman Sachs’ chief U.S. equity strategist David Kostin says that U.S. households will push net equity demand to new levels. “We expect households will be the largest source of equity demand this year,” Kostin explained.