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Bitcoin Hits $124K High as Trump Floats $2,000 Tariff Dividend

  • Bitcoin reached its all-time high of $124,000 per coin as broader markets rallied.
  • Former President Donald Trump suggested giving Americans a $2,000 “tariff dividend” check.
  • Market analysts expect such payments could cause bitcoin and stock prices to climb further.
  • Experts link previous government stimulus payouts to surges in bitcoin investment and prices.
  • The U.S. national debt has climbed to nearly $38 trillion, with tariff plans projected to raise over $1 trillion yearly by Trump.

Bitcoin hit its highest value ever this week at $124,000 per coin, with stock and cryptocurrency markets rising sharply. This increase occurred as traders paid attention to possible changes in U.S. policy and future market shifts.

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During this period of growth, Donald Trump floated the idea of a “tariff dividend” for Americans. The plan would deliver checks of $1,000 to $2,000 each, funded by revenues collected from tariffs. Trump shared on One America News Network that his main focus remains on reducing the national debt.

Market observers at the Bitfinex cryptocurrency exchange said that such a payment could boost bitcoin’s price, similar to what happened after government stimulus checks during the Covid-19 pandemic. “We suspect that Trump’s announcement of potentially considering a stimulus check for every citizen, funded by tariffs, could also contribute to a further rise in bitcoin’s price,” Bitfinex analysts commented via email.

A research paper from Harvard Kennedy School found a connection between stimulus payments and increases in cryptocurrency investments. According to Jake Kennis, a senior research analyst at Nansen, bitcoin’s recent 13% jump in just one week reflected strong momentum from institutional investors through new bitcoin exchange-traded funds (ETFs).

“Prices are now approaching a new all-time high, which could trigger renewed institutional flows and retail interest,” Kennis stated, noting that higher trading volumes will be necessary to confirm a lasting breakout.

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Analysts pointed out that the landscape has changed since the last wave of stimulus checks in 2020. At that time, key market infrastructure like spot ETFs did not exist, and regulations were less clear. Jasper De Maere of crypto market maker Wintermute observed that retail investors mainly drove earlier surges.

The increase in bitcoin’s value this year also coincides with the U.S. debt reaching close to $38 trillion, fueled by earlier pandemic spending and rising interest rates. According to the Treasury Department, tariffs have already brought in about $150 billion for the latest fiscal year, and Trump claimed during his interview that these revenues could grow to over $1 trillion each year as new tariffs are fully implemented.

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