Can Trump’s $2,000 Tariff Dividend Spark the Next Crypto Bull Run?

Prompting heated discussion in both the financial and crypto markets, US President Donald Trump has proposed a $2,000 "tariff dividend" for the vast majority of Americans.

Trump said the money would come from tariff revenue, which would also help reduce the record national debt of $38 trillion. This would not include Americans with high disposable income.

As a result of this announcement, the market reacted almost immediately. Solana surged to over $160, Ethereum rose above the $3,600 mark, and Bitcoin skyrocketed to above $106,000.

However, there are more procedures for this to be a done deal yet.

Trump had revealed the dividend plan on Truth Social, which read, "A dividend of at least $2,000 a person (not including high-income people!) will be paid to everyone."

The tariff dividend brought back liquidity bets similar to the COVID-era stimulus.

According to Kobeissi, who described the money supply as being "through the roof," the increase of 9.1% is due to the United States and China stimulus.

Pandemic Memories, Anyone?

Back during the COVID-19 pandemic, the stimulus money on a potential increase in the US money supply caused the crypto market to experience positive momentum.

The value of the $1,200 in Bitcoin-allocated checks from April 2020 has grown to over $20,000 as of today.

Optimism for cryptocurrencies has been bolstered this year by the increase in liquidity, both domestically and abroad. A new record high of $142 trillion has been set by the global money supply.

The developments related to the pandemic present a significant area of focus for cryptos.

Back then, a significant number of people invested in crypto using the stimulus payments they received in 2020 and 2021.

The price of Ethereum increased from roughly $110 to more than $800, while Bitcoin experienced a significant surge from about $5,000 to nearly $69,000 during that period.

A variety of obscure crypto tokens achieved even more significant increases. The surge of new capital during the COVID stimulus period marked one of the most significant bull runs in the history of digital assets.

If an individual had allocated their $1,200 COVID stimulus payment into Bitcoin in April 2020, when it was priced at approximately $6,500, they would have experienced a remarkable return, as the value surged to nearly $24,000 when Bitcoin peaked at almost $69,000.

The increase stood at over 1,900%. A significant segment of the trading community is of the opinion that the suggested $2,000 dividend might present a comparable opportunity.

The next leg up in cryptos can be sparked by the dividend, according to investors.

A modest investment, they argue, can grow into a much larger asset with the help of new capital infusion and rising institutional interest.

However, reactions on social media are divided.

Tariff Case at the Supreme Court

As the US Supreme Court considers the legality of Trump's tariff scheme, its future is clouded.

Predictions platforms like Polymarket and Kalshi show the chances of a Trump win are low, with averages pointing to 20-30% probability.

On November 5, during the arguments at the Supreme Court, the questioning lined up with the thinking that Trump's overreach in using an emergency law to impose tariffs.

Even the conservative and Trump-appointed justices questioned the legality of Trump's powers on tariffs.

The president has repeatedly warned that an anti-tariff ruling by the Supreme Court would weigh heavily on the US economy and threaten national security.

Cryptos have turned volatile during the tariff regime, and analysts say the Supreme Court case would finally put that see-saw to rest.

While the top court has been requested to expediate the ruling, usually it takes several months for the Supreme Court to announce its decision.

However, let's not forget the US administration has other laws through which tariffs could be imposed temporarily, at least.

For now, the uncertainty remains for cryptos, with the next leg up either from the Federal Reserve rate cuts and/or the tariff revenue dividends.

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