Bitcoin (BTC) Bulls Pay Attention, Tariff Dividend May Skip Direct Stimulus Checks
The cryptocurrency market was lit up on Sunday, with social media erupting in Cheers as users anticipated new Bull Runs in Bitcoin And tokens like XRP and Doge have been fueled by stimulus checks, following President Donald Trump’s announcement of a tariff dividend for low-income Americans in social reality.
But the truth, as Treasury Secretary Scott Bessent made clear, is more complicated.
Bessent explained that the president’s presidential dividend could be delivered through tax cuts from his main economic policy bill earlier this year.
“The $2,000 dividend could come in many forms, in many ways. It could just be the tax cuts that we see on the president’s agenda — no tax on tips, no tax on overtime, no tax on Social Security — cuts in auto loans,” Bessent told ABC’s This Week When asked about Trump’s social media post.
These indirect measures, as Bessent noted, may not trigger the same immediate surge in Bitcoin, altcoins, or consumer spending as direct stimulus checks typically do. That’s because checks provide quick, tangible cash inflows that can quickly boost demand, while tax cuts tend to distribute the benefits gradually.
It’s a case of a bird in the hand is worth two in the bush – the certainty of direct cash inflow generally carries a more immediate impact on the market than the uncertain promise of indirect measures.
Bessent’s clarification followed euphoric speculation that the announced dividend would come in the form of stimulus checks, drawing parallels with the covid-era payments closely linked to unprecedented rallies in cryptocurrencies—especially altcoins.
The narrative has elevated market valuations. Bitcoin It rallied from around $103,000 to $105,000 on Sunday, extending gains to more than $106,500 at one point during Monday’s Asian time.
The leading cryptocurrency has gained 4% in the past 24 hours, with altcoins such as XRP, WLFI, Pump, Uni, and ZEC rising 8% to 25%, respectively. The Coindesk 20 Index gained more than 5% to 3,469 points. The rally, however, stalled around 8:00 AM UTC.
It is also worth noting that drawing parallels with 2021 did not hold very well. After that, inflation was below the Federal Reserve’s 2% target, and interest rates were pinned near zero, both factors that encouraged increased risk and market outflows. Today, rates stand around 4% following recent cuts, and inflation remains at least a full percentage point above the Fed’s target.
This raises an important question: whether the recipients of the Tariff Dividend – through direct payments or indirect measures such as tax reduction – will channel those funds into crypto trading or choose to save it.
