Trump’s $5K Payout Promise Could Ignite Crypto Rally
Andrei Grachev, head of DWF Labs, believes that President Donald Trump’s promise of a $5,000 payout to every adult American could spark a 2021-like crypto rally if Republicans win the midterm elections.
Trump recently reiterated his pledge on Truth Social, stating that the funds would be distributed if the Republican Party secures a majority in both the House and Senate. He claims the country’s strong economic performance under Republican leadership would allow for such a move, with funds sourced from trade and tariff revenues. Grachev thinks this would act as a significant stimulus, akin to 150% of the COVID-era helicopter money.
Grachev predicts that a portion of the payout would flow into Bitcoin (BTC) and other cryptocurrencies, potentially driving prices to new highs similar to those seen in 2021. However, he warns of potential economic risks, including inflation and increased national debt, urging caution and risk management in the event of such a rally.
Trump has also cautioned that a Democratic victory could lead to economic turmoil, comparing it to the 1929 crisis that triggered the Great Depression. The estimated $1.3 trillion cost of the payouts would require congressional approval, which he argues would not be possible under Democratic control.