$5,000 Payments to Americans Could Trigger Sharp Bitcoin Price Swing
US President Donald Trump has proposed a $5,000 'dividend' payment to every adult American citizen if Republicans keep control of Congress after the midterm elections. The estimated cost of this program would be $1.2 trillion, which is more than three times the total amount distributed during the COVID-19 pandemic stimulus packages.
The idea has sparked controversy, with some users predicting that part of the sum could flow into the cryptocurrency market and potentially create a major altseason. ChatGPT, an AI-powered chatbot, predicts that Bitcoin (BTC) would initially surge in price due to speculation and front-running by traders. However, it also warns that the real danger lies after the initial enthusiasm, as higher inflation and tighter monetary policy could lead to a sharp correction.
Perplexity agrees with ChatGPT's assessment, stating that such a decision would be mildly bullish for BTC in the short term but not a standalone bull market trigger. Google's Gemini makes an interesting comparison between Trump's idea and the COVID-19 pandemic stimulus packages, noting that some people used part of the distributed cash to purchase BTC, which eventually triggered a bull run.