Trump’s $5,000 Payout Could Spark Next Crypto Bull Market
U.S. President Donald Trump has pledged to distribute $5,000 to every American if the Republicans secure both chambers of Congress in the upcoming midterm elections. Economically, this substantial cash injection could further fuel the rise of risky assets, including cryptocurrencies.
The head of DWF Labs suggests the impact might be even more significant, noting that the proposed payout would be roughly 150% of the COVID-19 stimulus checks. If even a portion of this liquidity flows into crypto, it could reignite speculative demand, potentially mirroring the 2020-21 bull market.
During the 2020-21 cycle, Bitcoin (BTC) surged past $20k in December 2020 and more than doubled to around $42k by January 2021. This rally was driven by institutional demand, with firms like MicroStrategy and Square acquiring BTC, while PayPal and others expanded crypto services. By November 2021, BTC peaked near $69k.
Currently, institutional participation in Bitcoin is stronger than ever. BlackRock’s IBIT recently added $195.6 million in BTC, accumulating around $1.57 billion over the last month alone. The Fed is also set to inject $5.8 billion into the markets next week, with Bitcoin holding above $80k for two consecutive weeks. These signs indicate robust institutional demand, suggesting that another wave of cash could amplify Bitcoin’s upside.