A recent survey has found that of the $380 billion in stimulus checks, nearly $40 billion will be used to invest in either the stock market or Bitcoin. Furthermore, of those surveyed, a majority revealed they prefer investing in Bitcoin than stocks. This new addition will only be rocket fuel to the two markets which have been performing exceptionally well this year.
A few days ago, President Joe Biden signed into law a bill that will see American households receive a stimulus check. With around 90% of American households eligible to get checks of $1,400, roughly $380 billion will be disbursed. With previous checks, a considerable amount was invested in Bitcoin and stocks. Now the same pattern is about to repeat. And those who missed the current bull cycle are betting its not over and want to cash in with the next one.
A survey conducted by Mizuho Securities shows that around 10% of the $380 billion is destined for Bitcoin and the stock market. It is also evident that there is a preference for Bitcoin over the stock market. This is no surprise following Bitcoin’s impressive bull run so far. If someone invested the first stimulus check disbursed in mid-2020, they would have seen the $1,200 had check earn by as much as 800% to reach $11,000. If they invested at the start of the year, their money would have doubled in less than 3 months.
Stimulus Checks To Trigger FOMO
Dan Dolev, the managing director of Mizuho Securities noted that the new money would see Bitcoin add 2%-3% to its market cap.
“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,”
Most investing in Bitcoin will try to catch Bitcoin before the next high. In the last few days, Bitcoin has set a new all-time high climbing as high as $61,000. If investors start FOMO (Fear of Missing Out) around this level, an immediate target would be set in the $75K regions. Further down the line, analysts expect Bitcoin to go on and reach as high as $100,000. The $100,000 target which was once perceived as ambitious has in recent months been regarded by some as highly conservative.
Bitcoin after a violent upsurge has started the weak with an equally violent fall. Bitcoin is not one to set a steady upward curve. With every rapid move, there is a correction. In the last case, the digital asset has settled above higher support, rebounding from $55K. Bulls will look to close the week retesting the current $60K high.