Will Americans Invest New Stimulus Checks In Crypto?

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As the long Labor Day weekend drew to an end in the US, investors reacted to a fall in Silicon Valley’s tech stock values which dragged markets further down. The tech-laden Nasdaq fell another 4% yesterday.

Bitcoin tried desperately to defend it’s $10,000 level.

Hence the question: will the fall for crypto and worldwide markets turn into a correction or is this the beginning of an actual bear market?

Your stimulus is now worth how much?

Furthermore, many are wondering whether they should now also invest their second stimulus check in the world of crypto, having heard about the possible unicorns still awaiting them in the exciting world of DeFi coins, or whether they should wait a bit longer.

Some 13,000 Americans are eagerly following the Bitcoinstimulus account on Twitter which shows them how much their first $1,200 stimulus check, which they received around April, would be worth if they would have invested it in Bitcoin.

Although the account definitely needs an update, the 79% profit that it showed on 1 September gets many dreaming about further gains.

Back in April, Coinbase CEO Brian Armstrong had already noted that his company saw many $1,200 investments from new accounts, meaning Americans were eagerly buying crypto. As we recently noted, Bitcoin and Tesla were the most popular investments in the US during the first half of 2020.

$2150 (+79.2%)#bitcoin

— $1200 Stimulus Is Now Worth (@BitcoinStimulus) September 1, 2020

Now, as Democrats and Republicans are striking a deal for a second stimulus check, social media is buzzing whether this time round the same will happen if investments go into crypto as they did the first time. Jason Deane, crypto analyst at Quantum Economics, made an interesting read out of exactly that question on Medium.

Even Brandon Mintz, CEO of bitcoin ATM network Bitcoin Depot chimed in on Forbes when presented with the hypothetical question, claiming that:

A second stimulus check might increase the [bitcoin] price.

With shifting attitudes towards traditional banking amidst the global pandemic, and increasing bitcoin value, we could see more people than ever putting their new stimulus check into crypto. Take a look at how much it has increased since most people got their last stimulus check. I think a lot of people see this and hope to maximize their funds while the price is still increasing.

Tesla cheap again?

Tesla, that other very popular investments of 2020 fell further towards a $330 level, down 21%. Before it’s pullback from the top, Tesla was trading at a price-to-book ratio of 42 versus 17 at the beginning of the year.

However, no one wants to be catching a falling knife, and thus the question remains: is this a mere correction or the start of an actual bear market?