More than 170,000 million dollars would enter the stock market soon. The aid packages will affect Bitcoin’s price too.
America’s youth are thinking about investing a high sum of their Financial Aid in the stock markets. This behavior appeared in a survey by Deutsche Bank in which respondents, in the range of 25 to 34 years, would be eager to spend half of government aid to buy shares.
Four hundred thirty investors who use online tools such as stockbrokers entered the survey. The research also states that operators in the 18-24 age range will use 40% of their check amount for the same purpose.
The percentage of users that think about investing in the stock market has seen a reduction for the 35 to 45-year-old group (37%), and for those users surpassing 55 years old, the latter segment would allocate only 16% to the stock market. In total, 37% of all respondents would direct a considerable part of their funds to stocks.
On the results, the bank noted that “a large amount of the next stimulus checks from the United States will probably go to equities.” It is a fact that the total amount that would enter the stock market would be about 170,000 million dollars. According to the Senate, the complete aid circles around $ 1.9 trillion.
The strategists said that behind the retail investments wave is a younger, “aggressive” population that is totally up to use leverage. The survey results confirmed that 53% of all traders have already invested in the stock market by sending other stimuli since 2020.
Financial Aid is favoring Bitcoin
The injection of capital to different US economy sectors serves to keep alive and protect local production due to the lockdown because of COVID-19. However, there are those users who prefer to invest the funds rather than spend them. The stock market is capitalizing on the situation, but so are bitcoin (BTC) and cryptocurrencies.
Since last year, when the first aid packages received approval in the Donald Trump era, the checks’ sending has coincided with an increase in bitcoin price, for example. In April of last year, when the first checks went for $ 1,200, the first cryptocurrency price went from $ 6,200 to $ 8,800 per unit, according to data from CoinMarketCap.
The second phase of monetary Aid pushed the price of bitcoin above $ 10,000. A similar situation happened in December of last year with another agreement to send 900,000 million dollars in Aid. At that moment, the price of BTC peaked at $ 22,890.
With a new aid package right hitting the US economy, investors are not going for stocks or financial derivatives. Still, they will also purchase more bitcoins, seriously affecting their price and reaching a new peak.
The upcoming financial stimulus, combined with the boom in institutional investments in BTC, could trigger a new reach in the price of bitcoin. Given the outlook, will bitcoin now exceed the $ 60,000 barrier? It is a simple matter of time for this fantastic price to be accurate.
By: Jenson Nuñez
