Trump Pledges $5,000 Dividend to Adult Citizens Amid Crypto Market Speculation
US President Donald Trump has pledged to pay $5,000 to each adult US citizen if Republicans maintain control of Congress after the midterm elections. The plan, dubbed a 'Trump dividend', would require funding in excess of $1 trillion and congressional approval.
The proposed payout is significantly higher than the $2,000 tariff dividend Trump suggested last year for Americans excluding high-income earners.
Research has shown that direct cash payments can increase investment demand. During the Covid-19 pandemic, purchases of Bitcoin rose significantly after stimulus checks were distributed in April 2020, with dollar-denominated Bitcoin buying volume increasing by about 3.8%.
However, some market participants are cautious about the plan's feasibility, citing the need for congressional approval and a funding source. Trump has suggested using tariff revenue to finance the program, but estimates suggest this would only cover around 14% of the estimated $1.2 trillion cost.