Bitcoin News Today: Trump's Tariff Dividend Plan Boosts Crypto, But Experts Question Sustainability

President Donald Trump's announcement of a proposed $2,000 "tariff dividend" for Americans sent shockwaves through financial markets, with cryptocurrency prices surging as investors speculated on the policy's implications. The total crypto market cap climbed to $3.5 trillion within hours, with Bitcoin (BTC) rising 2% to $103,778.01 and Ethereum (ETH) gaining 3.7% to $3,519.10, according to a Yahoo Finance report. The move reflects growing optimism that the stimulus could inject fresh liquidity into risk assets, echoing the crypto boom fueled by pandemic-era stimulus checks in 2020.

Trump, touting tariffs as a fiscal windfall, claimed the U.S. is generating "trillions of dollars" in revenue to fund the payouts while reducing its $37 trillion debt. "People that are against tariffs are fools," he wrote on Truth Social, emphasizing record stock market highs and low inflation, according to the Yahoo Finance report.

However, economists and budget analysts quickly challenged the math. Treasury Secretary Scott Bessent noted that 2025 tariff revenue totaled $195 billion year-to-date—far below the $300 billion to $513 billion needed for a $2,000 per-person payout, depending on eligibility criteria, as noted in a Wallet Investor article.

The crypto surge underscores the market's sensitivity to macroeconomic signals. Analysts like Anthony Pompliano compared the scenario to 2020, when stimulus checks drove Bitcoin from $6,000 to over $60,000, according to a BeInCrypto piece. "A liquidity explosion could trigger the next bull run," he said, citing parallels to the CARES Act's impact. Yet skepticism persists. The Kobeissi Letter warned that the policy could reignite inflation, which recently hit 3%, and questioned whether the Federal Reserve's easing cycle would offset tightening pressures, as noted in the BeInCrypto piece.

The Supreme Court is set to rule on the constitutionality of Trump's sweeping tariff powers, with critics arguing that the president overstepped by bypassing Congress. Republican Sen. Josh Hawley's $600 rebate bill also highlights congressional pushback, suggesting direct payments may face procedural delays, as mentioned in the Wallet Investor article. Treasury officials, meanwhile, hinted the dividend could materialize as tax cuts rather than checks, potentially limiting immediate market impacts, according to a Yahoo Finance article.

Despite uncertainties, crypto traders are betting on volatility. Dogecoin and Cardano saw sharp gains as investors priced in the possibility of a near-term rally. "Every new hint shifts sentiment," said one trader, noting that uncertainty itself can drive speculative activity, as noted in the Wallet Investor article. Yet institutional analysts urge caution. The Tax Foundation's Erica York emphasized that tariff revenue constitutes less than 4% of federal income, raising doubts about long-term sustainability, according to a Times of India report.

As the Federal Reserve eyes December rate decisions, markets remain divided. While Trump's tariffs have bolstered corporate profits and stock valuations, critics warn of inflationary risks from higher import costs. For crypto, the key question is whether the dividend—should it pass—will act as a catalyst for sustained growth or a short-lived spike amid broader macroeconomic headwinds.