Trump's Midterm 'Dividend' Could Send Bitcoin Soaring
Donald Trump's promise to deliver a 'Trump Dividend' of $5,000 to every American if Republicans win the midterms has sparked speculation about its potential impact on Bitcoin. The plan would cost around $1.2 trillion and would require Congressional approval.
The idea is not new, with past US stimulus checks having sent measurable money into crypto. A study by the Cleveland Fed found that there was a significant jump in Bitcoin purchases around the exact $1,200 amount after Trump's first COVID checks arrived in April 2020, with trading volume rising about 3.8% and BTC climbing sharply over the following month.
While it's unclear whether this would happen again, history suggests that free cash can boost financial markets. However, it's also worth noting that Trump's plan faces significant hurdles, including legal and funding questions, and may never become an actual payout.