The average American taxpayer received three rounds of stimulus checks from the United States government as a means of reviving the economy by increasing the spending potential of consumers. For many, this meant an opportunity to invest in Bitcoin (BTC).
A Cointelegraph report from August 26 shows that 11% of respondents aged 18-34 reinvested a portion of their stimulus checks in cryptocurrencies. Adult Americans who reinvested the first round of stimulus payments of April 2020 in Bitcoin have made a net profit of approximately 442%, turning a $ 1,200 investment into $ 5,304 as of October 31, 2021.
The second $ 600 stimulus check was distributed between December 2020 and January 2021, just two months before Bitcoin first hit an all-time high of $ 65,000.. If reinvested in Bitcoin, the second check would return a profit of 152% (approximately $ 312).
The average payment for the third stimulus check was set at $ 1,400, which was made available to eligible taxpayers beginning in March 2021. Since then, the price of Bitcoin has suffered a three-month-long bear market, but it made a full recovery until it crossed $ 65,000 in trade value for the first time. Despite the fluctuations, reinvesting the third stimulus check in Bitcoin would return a modest 7% or $ 98 profit at the time of writing..
Based on the above results, a timely reinvestment of $ 3,200 of stimulus checks into Bitcoin would return a total profit of $ 4,514 (nearly 71%) by the end of October. In a study conducted by Harris Poll on behalf of Yahoo Finance, the majority of Americans willing to invest in cryptocurrencies cited the primary interest in Bitcoin and Ether (ETH).
Cryptanalyst PlanB’s prediction on the price of Bitcoin is confirmed for the third month in a row.
Aug> 47k✅
Sep> 43k✅
Next targets: Oct> 63k, Nov> 98k, Dec> 135k pic.twitter.com/C45nfQkQSC– PlanB (@ 100trillionUSD) October 1, 2021
August> 47,000✅
September> 43,000✅
Upcoming targets: Oct> 63,000, Nov> 98k, 000, Dec> 135,000
According to PlanB, the price of Bitcoin will exceed the value of 98,000 dollars at the end of November. If the prediction is fulfilled, investments in stimulus checks will also obtain a 58% profit compared to the current market price.
Related: El Salvador Buys 420 More Bitcoin Coins
El Salvador announced Bitcoin as legal tender on September 7 and has since started reinvesting its US dollar reserves in acquiring Bitcoin..
President Nayib Bukele announced the addition of 420 Bitcoin on October 28, raising the national reserve to 1,120 BTC, worth $ 87.4 million.
It was a long wait, but worth it.
We just bought the dip!
420 new #Bitcoin
– Nayib Bukele (@nayibbukele) October 27, 2021
The wait has been long, but it has been worth it.
We just shopped during the fall!
420 new Bitcoin
According to Bukele, Once the country makes a profit from its investment in Bitcoin, an equivalent amount of its dollar reserves is reinvested to finance various initiatives. As a result, the total value of El Salvador’s national reserves maintains its original value in US dollar terms.
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