Bitcoin has experienced a significant rebound, climbing to approximately $105,000 after a prior decline of 20% from its all-time high below $100,000. This resurgence has been bolstered by a major bitcoin investment revealed by JPMorgan, a leading Wall Street firm.
The recent rally comes in the wake of U.S. President Donald Trump’s announcement of a “tariff dividend,” promising $2,000 payments to many Americans. This move has drawn parallels to past stimulus checks during the Covid-19 pandemic, which had a previous positive impact on bitcoin’s value. Analysts suggest that such financial initiatives could stimulate the cryptocurrency market once again, reminiscent of the bitcoin boom of 2021.
On his Truth Social account, Trump stated, “A dividend of at least $2,000 a person (not including high income people!) will be paid to everyone,” emphasizing that those against his trade policies were misguided. He also mentioned that the U.S. is set to collect “trillions of dollars” and will begin addressing its significant $37 trillion debt. Trump’s proposed payments have ignited speculation that they could elevate the price of bitcoin, similarly to the effects seen during previous economic interventions.
Response on social media has been enthusiastic, with various analysts and influencers noting the potential for increased bitcoin investments. Observers of the market have noted the converging factors of low interest rates, record highs, and anticipated stimulus measures as a perfect storm for a potential crypto rally. Pete Rizzo, a self-styled “bitcoin historian,” encouraged followers to consider investing in bitcoin with the incoming funds.
Trump’s tariff dividend announcement follows discussions earlier in October where he floated the idea of $1,000 to $2,000 rebates linked to revenue generated from his controversial trade tariffs. With the U.S. accruing approximately $150 billion from these tariffs in the last fiscal year, which ended in September, Trump maintains that the annual intake could exceed $1 trillion.
As speculation around the crypto market intensifies, many are keenly observing how these economic measures and political decisions might influence the future trajectory of bitcoin and the wider cryptocurrency ecosystem.
