Bitcoin has experienced a significant surge after its 20% drop from its all-time high, dipping below $100,000, a movement bolstered by JPMorgan disclosing a substantial bitcoin investment. The bitcoin price has surged to approximately $105,000, even as a troubling scenario for the cryptocurrency begins to materialize, potentially signaling trouble for the stock market. Bitcoin’s rally is fueled by U.S. president Donald Trump’s promise of a “tariff dividend” of at least $2,000 per person, which has been likened to a “stimulus check”—a factor that significantly contributed to the Covid-era bitcoin boom. U.S. president Donald Trump has confirmed the government will be sending $2,000 stimulus checks—an announcement that could potentially propel the bitcoin price upward.
“A dividend of at least $2,000 a person (not including high income people!) will be paid to everyone,” Trump posted, adding those against his controversial trade tariffs are “fools” and the U.S. is taking in “trillions of dollars and will soon begin paying down our enormous” $37 trillion debt. The potential for the U.S. government to resume direct payments to individuals has ignited speculation that it could elevate the bitcoin price and invigorate the crypto market, reminiscent of the impact seen during the Covid-era stimulus checks. “Crypto surges after President Trump announces $2,000 tariff ‘dividends’ to be paid out to Americans,” analysts posted alongside a screenshot of bitcoin and crypto prices rising. “Rate cuts, record highs, AI, and stimulus checks.” Buckle up. “‘Like’ if you’ll be buying bitcoin with your $2,000 Trump tariff stimulus,” Pete Rizzo posted, adding: “Free bitcoin. It’s coming.”
“Last time this happened, it started the 2021 crypto bull run where bitcoin pumped from $3,800 to $69,000,” another crypto influencer shared. The bitcoin price has experienced a notable surge during the second Trump administration; however, it has retreated from its recent highs since early October. Trump has confirmed the tariff dividend following his earlier suggestion of distributing checks of up to $2,000 in rebates, which would be funded by the revenues generated from his tariff agenda in early October. “We’re thinking maybe $1,000 to $2,000, it would be great,” Trump told, adding his “number one” priority is “paying down debt, because people have allowed the debt to go crazy.”
The U.S. debt has skyrocketed to nearly $38 trillion this year, driven by a mix of massive Covid-era expenditures and rising interest rates, leading some to worry about a potential “crisis” for the U.S. dollar. According to data from the Treasury Department, Trump’s global trade tariffs, currently under legal scrutiny, generated approximately $150 billion for the U.S. in the fiscal year that concluded in September. However, Trump stated that he anticipates tariffs will generate more than $1 trillion annually.