Trump's $5,000 Stimulus Plan Sparks Debate Over Bitcoin Impact
President Donald Trump's proposal to give every American adult $5,000 has sparked debate about its potential impact on Bitcoin. Investor Anthony Pompliano believes that a fiscal stimulus of this magnitude would expand the money supply and drive demand for scarce assets like Bitcoin as a store of value.
Pompliano points out that after the distribution of $1,200 CARES Act checks in 2020, Bitcoin's price surged from approximately $6,900 to nearly $29,000 by year-end. He also notes that a similar stimulus proposal floated by Trump in November 2025 saw Bitcoin rise 5% within 24 hours.
However, research from the Federal Reserve Bank of Cleveland found that only 0.02% of stimulus money entered Bitcoin exchanges directly in 2020, generating a permanent price impact of just 0.07%. This suggests that the actual capital flow from checks into Bitcoin would be statistically negligible.