Crypto Markets Rebound as Trump Promises $2,000 ‘Tariff Dividend’
Bitcoin climbs past $105K; analysts question funding feasibility of proposed payments
Cryptocurrency prices rose on Monday after U.S. President Donald Trump said his administration plans to distribute a “tariff dividend” of at least $2,000 to most Americans, sparking renewed optimism across digital asset markets.
In a post on Truth Social, Trump said the U.S. is generating “trillions of dollars” in tariff revenue, which will be used to both reduce the country’s $37 trillion national debt and fund direct payments to lower-income Americans.
“A dividend of at least $2,000 a person (not including high-income people!) will be paid to everyone,” Trump wrote.
The announcement helped lift major cryptocurrencies, with Bitcoin (BTC) gaining 1.9% over the past 24 hours to trade above $105,000. Ether (ETH) rose 4.7% to $3,526, while Solana (SOL) advanced 2.5% to $165. The CoinDesk 20 Index (CD20) added 1.5%, recovering part of last week’s 15% slide.
Despite Monday’s rally, Bitcoin remains down 5.7% for the week, while Ether has fallen 7.5%. Still, traders appear to be betting that potential stimulus could revive market sentiment and boost inflows into digital assets.
Questions Over Funding
Analysts, however, were quick to note that the proposal faces steep political and fiscal hurdles. The president cannot authorize such payments without congressional approval, and any plan to redistribute tariff revenue would need to clear the legislative process.
“Any use of tariff receipts for direct payments requires congressional appropriation,” said Andy Constan, CEO of Damped Spring Advisors, in a post on X.
In addition, the math doesn’t seem to add up. According to Erica York, vice president of Federal Tax Policy at the Tax Foundation, a $2,000 dividend would cost roughly $300 billion if 150 million adults qualify — far exceeding the $120 billion in new tariff revenue collected so far.
“After accounting for the offsetting effects of tariffs on taxable income, the net revenue falls closer to $90 billion,” York wrote.
That shortfall, she added, makes it unlikely that the proposed dividend could be fully funded through tariffs alone.
Market Reaction
Even so, the market’s response underscores the growing sensitivity of digital assets to fiscal and political developments. Bitcoin’s bounce above $105,000 coincides with a broader recovery in risk assets, and traders appear to be positioning for the possibility of stimulus-driven liquidity returning to the system.
Whether the rally can extend depends on more than political headlines. Investors will be watching congressional reactions, the pace of tariff revenue collection, and incoming data on U.S. liquidity conditions to gauge whether this week’s optimism can last.
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