Analysts Say Hypothetical Trump Stimulus Could Boost Crypto
President Donald Trump recently mentioned the possibility of giving some of the revenue from tariffs directly to Americans. This idea has sparked discussions among financial experts about a potential rise in markets, including cryptocurrencies.
In an interview with One America News Network, Trump said most of the tariff money would go toward paying off debt, but part could be given to citizens. He suggested amounts between $1,000 and $2,000, noting that tariff revenue could eventually reach over $1 trillion a year.
Even though nothing is confirmed, analysts at the cryptocurrency exchange Bitfinex believe the news alone could push crypto prices higher. They told Forbes that it might have a similar effect to the COVID stimulus checks, which had a modest impact on Bitcoin, raising trade volume by about 3.8% and prices by 0.07%, according to Peter Zimmerman from the Federal Reserve Bank of Cleveland.
However, with Bitcoin becoming more mainstream and widely available through investment products, a new stimulus could have a bigger impact this time. Retail investors who previously ignored crypto might also get interested.
Bitcoin has recently hit record highs, breaking $126K, even amid government uncertainties, and is seen as a safe haven. Analysts say strong demand and momentum suggest this bull run could continue.
