Why stimulus money is being invested?

By BlueChip Team

Just a couple weeks ago, President Biden signed a $1.9 trillion stimulus package which included a check of up to $1,400 for most Americans. After conducting a survey, Mizuno Securities is expecting about 10% of the stimulus checks ($40 billion) to get invested in stocks or cryptocurrency with a preference to bitcoin1. So why is it that average Americans are choosing to invest the money instead of spending it on rent, food, or other household needs?

For young Americans, exchanges like Robinhood have made it easier to invest and they want to take advantage of the market growth. From social media frenzy with Reddit meme-stocks like GME to Bitcoin hitting a high in the last month, the growth is a visible and attractive opportunity for them 2. The pandemic has also given people more free time allowing them to research investments through online resources. 

The people receiving the stimulus checks aren't all in the same circumstances either. Those working in the food, entertainment, or other pandemic hitting industries might've lost their job and need the stimulus money right away. Meanwhile, others who saw no changes to income while switching to remote work would see the stimulus as additional income. With a lot of the industries we would normally spend additional money on still closed, people are turning to investing to see how far they can make their money go3

If you are considering investing your "stimmies" in either stocks or crypto, as always, do your research and assess the risk beforehand.



  1. “Nearly 10% of the $380 Billion in Stimulus Checks May Be Used to Buy Bitcoin and Stocks: Survey.” Yahoo! Finance, Yahoo!, 
  2. Menton, Jessica. “Stimulus Check: Young Investors Use $1,400 COVID-19 Relief Payments to Join Stock Market Boom.” USA Today, Gannett Satellite Information Network, 17 Mar. 2021, 
  3. Phillips, Matt. “Recast as 'Stimmies,' Federal Relief Checks Drive a Stock Buying Spree.” The New York Times, The New York Times, 21 Mar. 2021, 

Tags: Informational