By the end of October, a timely reinvestment of $3,200 in stimulus cheques into Bitcoin would yield a total profit of $4,514 (almost 141 percent).
The US government issued three rounds of stimulus cheques to the typical American taxpayer in order to re-ignite the economy by raising consumers’ spending power. For some, it represented the chance to invest in Bitcoin (BTC).
According to a report on Aug. 26, 11% of respondents aged 18 to 34 re-invested a portion of their stimulus checks into cryptocurrencies. Adult Americans who reinvested the first wave of stimulus money into Bitcoin between April 2020 and October 31, 2021, made a net profit of nearly 442 percent, turning a $1,200 investment into $5,304.
The Stimulus Checks and Reinvestments
The second $600 stimulus check was given out between December 2020 and January 2021, barely two months before Bitcoin reached a new all-time high of $65,320. The second check, if reinvested in Bitcoin, would yield a profit of 152 percent (about $312).
The average payout for the third stimulus check was set at $1,400, with payments beginning in March 2021 for qualified taxpayers. Since then, Bitcoin has had a three-month bear market before fully recovering to reach a trading value of $65,000 for the first time.
Despite the volatility, reinvesting the third stimulus check in Bitcoin at the time of writing would provide a tiny 7 percent profit, or $98.
Based on the figures above, reinvesting $3,200 in stimulus checks into Bitcoin by the end of October would yield a total profit of $4,514 (almost 141 percent). According to a survey done on behalf of Yahoo Finance by Harris Poll, the majority of Americans eager to invest in cryptocurrencies are particularly interested in Bitcoin and Ether (ETH).
The Result of PlabB’s Bitcoin Prediction
For the third month in a row, crypto expert PlanB’s prediction on Bitcoin has come true.
Bitcoin is expected to reach $98,000 in value by the end of November, according to PlanB. If the forecast is correct, the stimulus check investments will benefit by 58 percent from today’s market price.
El Salvador declared Bitcoin a legal tender on September 7 and has since begun reinvesting its US dollar reserves in Bitcoin purchases.
On Oct. 28, President Nayib Bukele announced the addition of 420 Bitcoin to the national reserve, raising it to 1,120 BTC, worth $87.4 million.
Bukele claims that once the country achieves a profit on its Bitcoin investment, an equivalent amount from its dollar reserves is re-invested to fund various activities. As a result, the overall value of El Salvador’s national reserves in terms of the US dollar remains unchanged.
